Japan-China Tensions Threaten Anime Boom in Chinese Market

Recent tensions between Japan and China are casting a shadow over the booming anime market in China. Earlier this month, fans flocked to a cinema in Guangzhou to watch Demon Slayer: Kimetsu no Yaiba – Infinity Castle, which has rapidly become China’s top-grossing foreign film of the year. Many attendees arrived in cosplay, eager to participate in a cultural phenomenon that has been breaking box office records globally. However, escalating diplomatic tensions, sparked by remarks from Prime Minister Sanae Takaichi regarding Taiwan, threaten to disrupt this momentum.

The China Film Administration has suspended the approval of new Japanese film titles, and the release of at least six previously approved films has been postponed indefinitely. Additionally, over 20 performances by Japanese musicians have been canceled. These actions follow Takaichi’s comments, which suggested that a hypothetical conflict over Taiwan—a territory that China claims—could pose an existential threat to Japan.

Impact on Japanese Entertainment

Among the animated films caught in this diplomatic crossfire are Detective Conan: The Time-Bombed Skyscraper and the latest Crayon Shin-chan movie. The exact duration and extent of Beijing’s restrictions on Japanese films and live events remain uncertain, but the situation is already influencing Japanese companies’ plans to expand in a market that has been vital for their growth.

“Japan is walking a razor’s edge,” said Matt Alt, author of *Pure Invention: How Japan’s Pop Culture Conquered the World*. He noted that Japan’s shift from a manufacturing economy to one focused on services and content makes it more susceptible to political tensions and potential boycotts from Chinese consumers. “You can’t predict when China’s censors will come down with the hammer. It’s like trying to forecast the weather,” he added.

Responding to inquiries about the cancellations, Chinese Foreign Ministry spokeswoman Mao Ning stated that Takaichi’s remarks had hurt the sentiments of the Chinese people and impacted cooperation between Japan and China. “Japan should correct its wrongdoing and stop creating trouble on issues related to China,” she remarked.

A Cautionary Tale from South Korea

This recent escalation serves as a reminder of the impact of diplomatic disputes on entertainment. Nearly a decade ago, South Korea’s entertainment industry faced similar challenges when Beijing halted concerts, TV dramas, and celebrity endorsements following South Korea’s deployment of a US missile-defense system. Although US films have recently returned to Chinese theaters, South Korean content remains largely restricted.

During the pandemic, Japanese anime surged in popularity, filling the gap left by South Korean content. Demand for anime increased significantly, driven by platforms like Bilibili Inc. and Tencent Holdings Ltd.. Companies such as Sony Group Corp. capitalized on this trend, investing in Bilibili, while Studio Ghibli Inc. partnered with Alibaba Group’s film branch.

Demon Slayer grossed an impressive $49.9 million in its opening weekend in China, positioning it among the top box office debuts for a Japanese film. This success has led to increased projections for Sony’s annual revenue, which reached approximately ¥1.2 trillion in the year ending March 2023, representing a nearly 50% increase over five years.

Despite the current tensions, some films remain in theaters. Jeffrey Hall, a lecturer at Kanda University of International Studies, noted that Demon Slayer: Infinity Castle has not been removed from cinemas, indicating that the immense popularity of the franchise could mitigate backlash if further restrictions are imposed. “It looks like the appearance of taking strict actions to punish Japan, rather than the reality of results, might matter more to Beijing,” he explained.

As of now, cancellations appear to be focused on smaller concerts and events, while larger performances, like a concert featuring pop group W-inds, have not been affected. The scope of cancellations varies by city, with Beijing being particularly impacted. Notably, a concert by singer Ayumi Hamasaki is still set to take place in Shanghai on Saturday, while a performance by Japanese jazz musicians was abruptly canceled just hours before it was due to start.

This diplomatic strife brings to light the broader implications for the Japanese entertainment industry, which has seen significant growth in China. The Chinese government’s actions may undermine its own efforts to stimulate consumption in a weakening economy. As concert promoter Christian Petersen-Clausen remarked, “To unlock the next level of economic growth for the Chinese economy, we need stability. We need predictability.” The ongoing situation highlights the delicate balance between cultural exchange and political tensions in the region.