China’s “new cultural trio” demonstrates the growing power of integrated IP commercialization

China’s cultural industries are increasingly embracing an integrated intellectual property strategy, with web novels, micro dramas, and video games forming what industry leaders have described as a unified IP development ecosystem capable of generating significant global commercial success.

Speaking during the 34th National Book Expo in Hangzhou, held from July 24–27, experts highlighted how the country’s digital entertainment sectors have evolved from operating independently into a coordinated model that maximizes the value of original creative works across multiple media.

According to Zeng Fanwen, Executive Director of the Research Institute of Cultural Industries at Renmin University of China, the relationship between the three sectors has fundamentally changed.

“Previously, web literature, online dramas, and video games developed along separate paths,” Zeng explained. “Today, web novels provide the original creative foundation, micro dramas offer rapid market validation through audience engagement, and video games create sustained commercial value through long-term monetization.”

The model reflects an increasingly sophisticated approach to IP management, enabling creators and rights holders to evaluate market demand before committing to larger-scale adaptations while extending the commercial lifespan of successful properties.

Shen Shicheng, Deputy Head of the Publicity Department of the Zhejiang Provincial Committee of the Communist Party of China, described the “new cultural trio” as more than three connected industries.

“It is a fully integrated IP development ecosystem,” Shen said, emphasizing the strategic role that intellectual property now plays in China’s cultural export strategy.

The commercial impact of this approach is already evident. According to Wang Zhongjie, General Manager of Overseas Business at Yuewen Group, Chinese web novels now reach nearly 400 million readers across more than 200 countries and regions, generating overseas revenue of approximately CNY 5.64 billion (around USD 830 million).

Many of these successful literary works have become valuable source material for adaptation into micro dramas and video games, allowing IP owners to expand audiences while creating multiple revenue streams from a single underlying work.

Video games, in particular, continue to demonstrate the international potential of Chinese-created intellectual property. Titles such as Genshin Impact have reportedly generated more than USD 4 billion in revenue while introducing global audiences to elements of China’s intangible cultural heritage. Meanwhile, Black Myth: Wukong, inspired by the classic novel Journey to the West, has received widespread international recognition and multiple industry awards.

The integrated development of literary, audiovisual, and interactive content illustrates a broader shift in IP commercialization, with original creative works increasingly viewed as scalable assets capable of supporting cross-media franchises. As Chinese entertainment companies continue to expand internationally, this approach may offer a model for maximizing the long-term value of creative intellectual property in global markets.

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