China becomes world's fourth-largest licensing market

China has surpassed Germany to become the world's fourth-largest licensing market, behind the US, UK and Japan, fueled by IP (intellectual properties) such as Joy of Life (庆余年) and Black Myth: Wukong, Shanghai Daily learned on Monday.

Online literature, which has gradually been gaining international awareness, has driven the trend, spanning various formats such as novels, animation, TV series, films, games and offline derivatives, industry officials said.

According to Licensing International, China's retail sales of licensed products and services reached US$13.77 billion in 2023, ranking No. 4 worldwide. In another report, published by the China National Light Industry Council and the China Toy & Juvenile Products Association, the proportion of domestically licensed IPs in China had surpassed that of Europe and the US for three consecutive years, making China the largest source of IPs for licensing.

The China Cultural Industry IP Influence Report, released on Sunday by Creative Industry and Technology Research Institute of Renmin University of China, released top 50 Chinese IPs between January 2023 and September 2024. The top five Chinese IPs include Joy of Life, Black Myth: Wukong, Soul Land, Three-Body and Battle Through the Heavens.

The No. 1 IP on the list is Joy of Life, a novel originally published on Qidian, a platform under Yuewen as China's biggest online literature site. In November, the novel was added to the British Library's collection and it has been translated into multiple languages, including English, Korean, and Indonesian. The TV dramas based on the novel were broadcast on Disney+ and are currently being translated into 14 languages for international release.

Chinese online literature has undergone significant growth over the past 20 years, now developing a robust ecosystem in the digital era, especially fueled by AI-powered translation. China's online literature industry generated 4.35 billion yuan revenue in 2023. The industry produced 695,800 online works, attracting a combined 300 million visits, it was revealed at an online literature week event held in Shanghai recently.

Black Myth: Wukong, China's first AAA game title, claims second spot in the list. With over 23 million copies sold on Steam, the game has generated more than US$1.01 billion in revenue globally.

The game, developed from Chinese legend Journey to the West, has won global awards, including the 2024 Golden Joystick Award for Game of the Year, Best Visual Design, and TGA 2024's Best Action Game. It has also boosted the economy in sectors such as computer hardware, culture and tourism.

According to Renmin University's report, more than 40 percent of the top 50 IPs come from online literature, cementing it as the largest source of cultural IP in China. Over recent years, China has built a highly advanced IP industry chain, with online literature being adapted into print, audiobooks, anime, TV series, films, games, and various other derivatives. This expansion has boosted the commercial value of these IPs, fueling the growth of China's IP licensing market.