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China Animation Industry Report, 2005-2006

Published: Oct/2006

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The gross earnings of China's animation industry have already exceeded that of film industry. Due to China's tremendous market and its weak creativity, over 80 percent of profits generated from animation industry were trapped into pockets of Japanese and Americans. China becomes the world's largest import country for animation products. Many world-famous cartoon characters such as Snoopy, Mickey Mouse and Hello Kitty grabbed RMB 600 million from China in one single year.

As of 2005, Chinese government has successively issued policies to support the development of animation industry. Private enterprises and foreign-funded companies swarmed into the area of animation production and animation industry bases throughout the country came into being. 2006 Shenzhen Culture Blue Book revealed China's revenue from animation industry hit RMB 11.7 billion in 2004. And the total cartoon production for 2004 was only 29,000 minutes, while the market demand was 268,000 minutes, which left a gap of 230,000 minutes. On one hand, the shortage of cartoon resource in TV station was serious; on the other, various animation exhibitions and shows dazzled the market.
 
In the first half of 2005, construction of animation industry bases sprung up in each region. With relevant policies, it brought an investment upsurge to animation industry.

Animation products have large market space, while the market of its derivative products is tremendous. Currently, the annual sales of stationery is RMB 60 billion, and that of children's food, children's toys and clothing is RMB35 billion, RMB20 billion and more than RMB90 billion respectively. Additionally, the annual sales of children audio & video and publication reach RMB 10 billion. To some degree, the future development of these industries will hang on the boost of animation industry, an emerging industry. By analogy, China's animation industry will own enormous development space with the production value exceeding RMB100 billion.



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