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Game Time: 5 Must-Knows About China’s Mobile Gaming Market

China has the largest mobile gaming market in the world – an exciting market not just for game-lovers, but also for those into marketing and advertising. Shanshan Cao, Senior market analyst China at Newzoo, recently shared the ins and out of China’s hot gaming world. What’s on Weibo was there to take note.

Manya Koetse

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China has the largest mobile gaming market in the world – an exciting market not just for game-lovers, but also for those into marketing and advertising. Shanshan Cao, senior market analyst China at Newzoo, recently shared the ins and out of China’s hot gaming world. What’s on Weibo joined the event, that was hosted by Digital China.

China has the largest gaming market in the world – and it is booming business. During the Digital China event (中国数码), a Sino-Dutch initiative focused on Chinese digital innovation, Shanshan Cao, senior market analyst at Newzoo, recently discussed the latest developments and opportunities in China’s gaming market, that is more and more focused on mobile gaming.

China’s Mobile Gaming Industry

“I love to play games,” Shanshan Cao smilingly starts her talk. Every day after work, she comes home to her favorite PC games. The rise of mobile gaming has now also made it possible to enjoy her games outside of the house. Not many people are that familiar with ‘mobile gaming’, but without realizing, she says, many of us already are mobile gamers. The great success of mobile games like Candy Crush or Angry Birds has proved that mobile gaming is quickly taking over a huge chunk of the international gaming market.

Shanshan Cao, Sr. Market Analyst China of Newzoo.

Shanshan Cao, Sr. Market Analyst China of Newzoo.

The US currently has around 139 million mobile gamers. The numbers vary, but according to Cao, China now has approximately 183 million gamers, and it is believed that 71% of the online population of China is an (occasional) online gamer, making it the largest online game market in the world.

One of the key drivers behind this online gaming environment is the fact that China is a mobile-first country. China’s average mobile user owns a relatively cheap but high-performance mobile phone, which enables them to play mobile games. As the quality of China’s smartphones keeps on rising, so are the possibilities and developments within China’s mobile gaming market.

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What makes the market so interesting for companies, Cao explains, is their audience: China’s mobile gamers are young, mainly living in the first and second-tier cities of China, and half of them are female. Most importantly, they generally are fervent users of QQ, WeChat, and other social media, and like to spend money online as digital consumers who do not mind paying for movies, music, or games.

There are many different ways in which mobile games can bring revenue. There are paid games, or games with in-game payment options where users can generate a new life after they are game over by paying for it.

But the commercial power of free mobile games also should not be underestimated, Cao says: in-game advertising could earn money in various ways. The social-media-loving audiences of mobile games make them very interesting for brands who can advertise through precise targeting and crossover cooperations.

For example, Cao mentions, brands could make their products extra appealing by giving away in-game rewards. In this way, one would not only buy a L’Oreal shampoo, but also get ‘extra lives’ or other in-game rewards with it, making both a product and a game more attractive for gamers.

China’s Mobile Gaming Market: 5 Things You Need to Know

By now, China’s mobile games market has risen to 41% of the total Chinese games market. Shanshan Cao names the 5 main characteristics of this market; the must-know facts for anyone interested in being part of it.

1. Highly Competitive Market
China’s mobile games market is a highly competitive one. Right now, it is dominated by big players Netease and Tencent, that, amongst many others, produced the hugely popular Kāixīn Xiāo Xiāo Lè 开心消消乐 (see image).

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Besides these giants, there are also many other big players – such as independent mobile game company iDreamsky. This makes it challenging for smaller companies to enter the market.

It is especially difficult for non-Chinese companies to enter China’s mobile gaming market, but there are also many opportunities for marketers and gaming companies that make it worthwhile. China has the world’s largest gaming market that is still continuing to grow; an exciting and booming place to be for companies that are not afraid of a challenge.

2. Restrictions & Censorship
Even without the big players, the Chinese gaming market is somewhat hard to enter for non-Chinese companies due to local restrictions and censorship. There is no Google Play Store, for example, as all Google products including Gmail, Google search, and the app store have been blocked since 2010.

This is just one of the many local restrictions foreign companies would have to deal with. But, Shanshan notes, one major possibility for foreign companies to tap into the market is to establish an own company in China or to work with a local partner that has a thorough understanding of the market and its restrictions and possibilities.

Swedish gaming company Mojang recently opted for the latter, as it teamed up with Chinese game giant Netease to develop a China-tailored version of their hugely popular Minecraft game. It currently holds the number one spot in the popular mobile games rank in China under the name of ‘My World’ (我的世界).

3. Fan Economy
Many of China’s popular online game are based on popular Chinese literature, comics, anime or reality TV shows – this ‘crossover success’ is an important part of China’s mobile gaming market.

Star Wars is a good example of how ’fan economy’ can benefit multiple markets, including the gaming one; the Star Wars: Commander game became a number one hit in China earlier this year, generating more than 1 million downloads in just four days within its release.

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Shanshan encourages foreign companies to use mobile big data to help them understand Chinese consumers and their preferences.

4. Going Global
The competitive domestic gaming market has led to an increasing internationalization of China’s gaming companies. One of these companies is Snail Games, that was established in Suzhou, China, in 2000, and set up its LA-based USA company in 2010.

Going global poses a challenge for these companies, as they have to adjust their design to a more western taste, which often means making it less ‘cute’ or adding some game elements and promotion methods that speaks to a western audience. For the USA launch of the game Taichi Panda, for example, Snail Games hired famous American martial artist, judoka and actress Ronda Rousey to be their spokesman to make the game more ‘American’.

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There are also companies, including Tencent and Alibaba, that are all about buying; they enter the western market and buy up local companies like Miniclip or Pocket Gems.

Shanshan notes that the internationalisation of China’s mobile gaming market also forms an opportunity for foreign gaming companies; if they do not have a strategy to enter China themselves, it is also commercially interesting to help Chinese games to do localisation in countries outside of China.

5. Mobile E-Sport Games
Mobile e-sport is bigger in China than it is in the West. Many bestseller games have proven that e-sport can make much money on console – but it is even more interesting when people can play it on their phone whenever they want to play it. Adding a competitive feature, like is done in Hero Pro League, makes it even more appealing to players.

One of the people who have made this market bigger is e-sports lunatic Wang Sicong, who also happens to be the son of the richest man in China.

Shanshan stresses that e-sports are important within China’s mobile gaming, but that it is not necessarily the dominant genre: “At this moment, China’s mobile gaming market has so much potential – anything is possible,” she says – again reaffirming that China’s mobile gaming market is anything but game over.

– By Manya Koetse

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©2016 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Manya is the founder and editor-in-chief of What's on Weibo, offering independent analysis of social trends, online media, and digital culture in China for over a decade. Subscribe to gain access to content, including the Weibo Watch newsletter, which provides deeper insights into the China trends that matter. More about Manya at manyakoetse.com or follow on X.

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China Arts & Entertainment

Controversial Wanghong Livestreamers Are Becoming a Weibo Staple in China

‘Wanghong’ was a mark of online fame; now, it’s increasingly tied to controversy and scandal.

Wendy Huang

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As livestreaming continues to gain popularity in China, so do the controversies surrounding the industry. Negative headlines involving high-profile livestreamers, as well as aspiring influencers hoping to make it big, frequently dominate Weibo’s trending topics.

These headlines usually revolve around China’s so-called wǎnghóng (网红) influencers. Wanghong is a shortened form of the phrase “internet celebrity” (wǎngluò hóngrén 网络红人). The term doesn’t just refer to internet personalities but also captures the viral nature of their influence—describing content or trends that gain rapid online attention and spread widely across social media.

Recently, an incident sparked debate over China’s wanghong livestreamers, focusing on Xiaohuxing (@小虎行), a streamer with around 60,000 followers on Douyin, who primarily posts evaluations of civil aviation services in China.

Xiaohuxing (@小虎行)

On October 15, 2024, at Shenzhen Bao’an International Airport, Xiaohuxing confronted a volunteer at the automated check-in counter, insisting she remove her mask while livestreaming the entire encounter. He was heard demanding, “What gives you the right to wear a mask? What gives you the right not to take it off?” and even attempted to forcibly remove her mask, challenging her to call the police.

During the livestream, the livestreamer confronted the woman on the right for wearing a facemask.

He also argued with a male traveler who tried to intervene. In the end, the airport’s security officers detained him. Shortly after the incident, a video of the livestream went viral on Weibo under various hashtags (e.g. #网红小虎行机场强迫志愿者摘口罩#) and attracted millions of views. The following day, Xiaohuxing’s Douyin account was banned, and all his videos were removed. The Shenzhen Public Security Bureau later announced that the account’s owner, identified as Wang, had been placed in administrative detention.

On October 13, just days before, another livestreaming controversy erupted at Guangzhou Baiyun International Airport. Malatang (@麻辣烫), a popular Douyin streamer with over a million followers, secretly filmed a young couple kissing and mocked them, continuing to film while passing through security—an area where filming is prohibited.

Her livestream quickly went viral, sparking discussions about unauthorized filming and misconduct among Chinese wanghong. In response, Malatang’s agent posted an apology video. However, the affected couple hired a lawyer and reported the incident to the police (#被百万粉丝网红偷拍当事人发声#). On October 17, Malatang’s Douyin account was banned, and her videos were removed.

Livestreamer Malatang making fun of the couple in the back at the airport.

In both cases, netizens uncovered additional examples of inappropriate behavior by Xiaohuxing and Malatang in past broadcasts. For example, Xiaohuxing was reportedly aggressive towards a flight attendant, demanding she kneel to serve him, while Malatang was criticized for scolding a delivery person who declined to interact with her on camera.

Comments on Weibo included, “They’ll do anything for traffic. Wanghong are getting a bad reputation because of people like this.” Another added, “It seems as if ‘wanghong’ has become a negative term now.”

 
Rising Scrutiny in China’s Wanghong Economy
 

Xiaohuxing and Malatang are far from isolated cases. Recently, many other wanghong livestreamers have also been caught up in negative news.

One such figure is Dong Yuhui (董宇辉), a former English teacher at New Oriental (新东方) who transitioned to livestreaming for East Buy (东方甄选), where he mixed education with e-commerce (read here). Dong gained significant popularity and boosted East Buy’s brand before leaving to start his own company. Recently, however, Dong faced backlash for inaccurate statements about Marie Curie during an October 9 livestream. He incorrectly claimed that Curie discovered uranium, invented the X-ray machine, and won the Nobel Prize in Literature, among other things.

Considering his public image as a knowledgeable “teacher” livestreamer, this incident sparked skepticism among viewers about his actual expertise. A related hashtag (#董宇辉称居里夫人获得诺贝尔文学奖#) garnered over 81 million views on Weibo. In addition to this criticism, Dong is also being questioned about potential false advertising, which is a major challenge for all livestreamers selling products during their streams.

Dong Yuhui (董宇辉) during one of his livestreams.

Another popular livestreamer, Dongbei Yujie (@东北雨姐), is currently also facing criticism over product quality and false advertising claims. Originally from Northeast China, Dongbei Yujie shares content focused on rural life in the region. Recently, her Douyin account, which boasts an impressive 22 million followers, was muted due to concerns over the quality of products she promoted, such as sweet potato noodles (which reportedly contained no sweet potato). Despite issuing public apologies—which have garnered over 160 million views under the hashtag “Dongbei Yujie Apologizes” (#东北雨姐道歉#)—the controversy has impacted her account and led to a penalty of 1.65 million yuan (approximately 231,900 USD).

From Dongbei Yujie’s apology video

Former top Douyin livestreamer Fengkuang Xiaoyangge (@疯狂小杨哥) is also facing a career downturn. Leading up to the 2024 Mid-Autumn Festival, he promoted Hong Kong Meicheng mooncakes in his livestreams, branding them as a high-end Hong Kong product. However, it was soon revealed that these mooncakes had no retail presence in Hong Kong and were primarily produced in Guangzhou and Foshan, sparking accusations of deceptive marketing. Due to this incident and previous cases of misleading advertising, his company came under investigation and was penalized. In just a few weeks, Fengkuang Xiaoyangge lost over 8.5 million followers (#小杨哥掉粉超850万#).

Fengkuang Xiaoyangge (@疯狂小杨哥) and the mooncake controversy.

It’s not only ecommerce livestreamers who are getting caught up in scandal. Recently, the influencer “Xiaoxiao Nuli Shenghuo” (@小小努力生活) and her mother were arrested for fabricating a tragic story – including abandonment, adoption, and hardships – to gain sympathy from over one million followers and earn money through donations and sales. They, and two others who helped them manage their account, were sentenced to ten days in prison for ‘false advertising.’

 
Wanghong Fame: Opportunity and Risk
 

China’s so-called ‘wanghong economy’ has surged in recent years, with countless content creators emerging across platforms like Douyin, Kuaishou, and Taobao Live. These platforms have transformed interactions between content creators and viewers and changed how products are marketed and sold.

For many aspiring influencers, becoming a livestreamer is the first step to building a presence in the streaming world. It serves as a gateway to attracting traffic and potentially monetizing their online influence.

However, before achieving widespread fame, some livestreamers resort to using outrageous or even offensive content to capture attention, even if it leads to criticism. For example, before his account was banned, Xiaohuxing set his comment section to allow only followers to comment, gaining 3,000 new followers after his controversial livestream at Shenzhen Airport went viral. Many speculated that some followers joined just to leave critical comments, but it nonetheless grew his following.

As livestreamers gain significant fame, they must exercise greater caution, as they often hold substantial influence over their audiences, making accuracy essential. Mistakes, whether intentional or not, can quickly erode trust, as seen in the example of the super popular Dong Yuhui, who faced backlash after his inaccurate comment about Marie Curie sparked public criticism.

China’s top makeup livestreamer, Li Jiaqi (李佳琦), experienced a similar reputational crisis in September last year. Responding dismissively to a viewer who commented on the high price of an eyebrow pencil, Li replied, “Have you received a raise after all these years? Have you worked hard enough?” Commentators pointed out that the pencil’s cost per gram was double that of gold at the time. Accused of “forgetting his roots” as a former humble salesman, Li lost one million Weibo followers in a day (read more here).

This meme shows that many viewers did not feel moved by Li’s apologetic tears after the eyepencil incident.

Despite the challenges and risks, becoming a wanghong remains an attractive career path for many. A mid-2023 Weibo survey on “Contemporary Employment Trends” showed that 61.6% of nearly 10,000 recent graduates were open to emerging professions like livestreaming, while 38.4% preferred more traditional career paths.

 
Taming the Wanghong Economy
 

In response to the increasing number of controversies and scandals brought by some wanghong livestreamers, Chinese authorities are implementing stricter regulations to monitor the livestreaming industry.

In 2021, China’s Propaganda Department and other authorities began emphasizing the societal influence of online influencers as role models. That year, the China Association of Performing Arts introduced the “Management Measures for the Warning and Return of Online Hosts” (网络主播警示与复出管理办法), which makes it challenging, if not impossible, for “canceled” celebrities to stage a comeback as livestreamers (read more).

The Regulation on the Implementation of the Law of the People’s Republic of China on the Protection of Consumer Rights and Interests (中华人民共和国消费者权益保护法实施条例), effective July 1, 2024, imposes stricter rules on livestream sales. It requires livestreams to disclose both the promoter and the product owner and mandates platforms to protect consumer rights. In cases of illegal activity, the platform, livestreaming room, and host are all held accountable. Violations may result in warnings, confiscation of illegal earnings, fines, business suspensions, or even the revocation of business licenses.

These regulations have created a more controlled “wanghong” economy, a marked shift from the earlier, more unregulated era of livestreaming. While some view these measures as restrictive, many commenters support the tighter oversight.

A well-known Kuaishou influencer, who collaborates with a person with dwarfism, recently faced backlash for sharing “vulgar content,” including videos where he kicks his collaborator (see video) or stages sensational scenes just for attention.

Most commenters welcome the recent wave of criticism and actions taken against such influencers, including Xiaohuxing and Dongbei Yujie, for their behavior. “It’s easy to become famous and make money like this,” commenters noted, adding, “It’s good to see the industry getting cleaned up.”

State media outlet People’s Daily echoed this sentiment in an October 21 commentary, stating, “No matter how many fans you have or how high your traffic is, legal lines must not be crossed. Those who cross the red line will ultimately pay the price.”

This article and recent incidents have sparked more online discussions about the kind of influencers needed in the livestreaming era. Many suggest that, beyond adhering to legal boundaries, celebrity livestreamers should demonstrate a higher moral standard and responsibility within this digital landscape. “We need positive energy, we need people who are authentic,” one Weibo user wrote.

Others, however, believe misbehaving “wanghong” livestreamers naturally face consequences: “They rise fast, but their popularity fades just as quickly.”

When asked, “What kind of influencers do we need?” one commenter responded, “We don’t need influencers at all.”

By Wendy Huang

Edited for clarity by Manya Koetse

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©2024 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

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China Books & Literature

Why Chinese Publishers Are Boycotting the 618 Shopping Festival

Bookworms love to get a good deal on books, but when the deals are too good, it can actually harm the publishing industry.

Ruixin Zhang

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JD.com’s 618 shopping festival is driving down book prices to such an extent that it has prompted a boycott by Chinese publishers, who are concerned about the financial sustainability of their industry.

When June begins, promotional campaigns for China’s 618 Online Shopping Festival suddenly appear everywhere—it’s hard to ignore.

The 618 Festival is a product of China’s booming e-commerce culture. Taking place annually on June 18th, it is China’s largest mid-year shopping carnival. While Alibaba’s “Singles’ Day” shopping festival has been taking place on November 11th since 2009, the 618 Festival was launched by another Chinese e-commerce giant, JD.com (京东), to celebrate the company’s anniversary, boost its sales, and increase its brand value.

By now, other e-commerce platforms such as Taobao and Pinduoduo have joined the 618 Festival, and it has turned into another major nationwide shopping spree event.

For many book lovers in China, 618 has become the perfect opportunity to stock up on books. In previous years, e-commerce platforms like JD.com and Dangdang (当当) would roll out tempting offers during the festival, such as “300 RMB ($41) off for every 500 RMB ($69) spent” or “50 RMB ($7) off for every 100 RMB ($13.8) spent.”

Starting in May, about a month before 618, the largest bookworm community group on the Douban platform, nicknamed “Buying Like Landsliding, Reading Like Silk Spinning” (买书如山倒,看书如抽丝), would start buzzing with activity, discussing book sales, comparing shopping lists, or sharing views about different issues.

Social media users share lists of which books to buy during the 618 shopping festivities.

This year, however, the mood within the group was different. Many members posted that before the 618 season began, books from various publishers were suddenly taken down from e-commerce platforms, disappearing from their online shopping carts. This unusual occurrence sparked discussions among book lovers, with speculations arising about a potential conflict between Chinese publishers and e-commerce platforms.

A joint statement posted in May provided clarity. According to Chinese media outlet The Paper (@澎湃新闻), eight publishers in Beijing and the Shanghai Publishing and Distribution Association, which represent 46 publishing units in Shanghai, issued a statement indicating they refuse to participate in this year’s 618 promotional campaign as proposed by JD.com.

The collective industry boycott has a clear motivation: during JD’s 618 promotional campaign, which offers all books at steep discounts (e.g., 60-70% off) for eight days, publishers lose money on each book sold. Meanwhile, JD.com continues to profit by forcing publishers to sell books at significantly reduced prices (e.g., 80% off). For many publishers, it is simply not sustainable to sell books at 20% of the original price.

One person who has openly spoken out against JD.com’s practices is Shen Haobo (沈浩波), founder and CEO of Chinese book publisher Motie Group (磨铁集团). Shen shared a post on WeChat Moments on May 31st, stating that Motie has completely stopped shipping to JD.com as it opposes the company’s low-price promotions. Shen said it felt like JD.com is “repeatedly rubbing our faces into the ground.”

Nevertheless, many netizens expressed confusion over the situation. Under the hashtag topic “Multiple Publishers Are Boycotting the 618 Book Promotions” (#多家出版社抵制618图书大促#), people complained about the relatively high cost of physical books.

With a single legitimate copy often costing 50-60 RMB ($7-$8.3), and children’s books often costing much more, many Chinese readers can only afford to buy books during big sales. They question the justification for these rising prices, as books used to be much more affordable.

Book blogger TaoLangGe (@陶朗歌) argues that for ordinary readers in China, the removal of discounted books is not good news. As consumers, most people are not concerned with the “life and death of the publishing industry” and naturally prefer cheaper books.

However, industry insiders argue that a “price war” on books may not truly benefit buyers in the end, as it is actually driving up the prices as a forced response to the frequent discount promotions by e-commerce platforms.

China News (@中国新闻网) interviewed publisher San Shi (三石), who noted that people’s expectations of book prices can be easily influenced by promotional activities, leading to a subconscious belief that purchasing books at such low prices is normal. Publishers, therefore, feel compelled to reduce costs and adopt price competition to attract buyers. However, the space for cost reduction in paper and printing is limited.

Eventually, this pressure could affect the quality and layout of books, including their binding, design, and editing. In the long run, if a vicious cycle develops, it would be detrimental to the production and publication of high-quality books, ultimately disappointing book lovers who will struggle to find the books they want, in the format they prefer.

This debate temporarily resolved with JD.com’s compromise. According to The Paper, JD.com has started to abandon its previous strategy of offering extreme discounts across all book categories. Publishers now have a certain degree of autonomy, able to decide the types of books and discount rates for platform promotions.

While most previously delisted books have returned for sale, JD.com’s silence on their official social media channels leaves people worried about the future of China’s publishing industry in an era dominated by e-commerce platforms, especially at a time when online shops and livestreamers keep competing over who has the best book deals, hyping up promotional campaigns like ‘9.9 RMB ($1.4) per book with free shipping’ to ‘1 RMB ($0.15) books.’

This year’s developments surrounding the publishing industry and 618 has led to some discussions that have created more awareness among Chinese consumers about the true price of books. “I was planning to bulk buy books this year,” one commenter wrote: “But then I looked at my bookshelf and saw that some of last year’s books haven’t even been unwrapped yet.”

Another commenter wrote: “Although I’m just an ordinary reader, I still feel very sad about this situation. It’s reasonable to say that lower prices are good for readers, but what I see is an unfavorable outlook for publishers and the book market. If this continues, no one will want to work in this industry, and for readers who do not like e-books and only prefer physical books, this is definitely not a good thing at all!”

By Ruixin Zhang, edited with further input by Manya Koetse

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