Large, lucrative and hyper-competitive: Why you need to understand the Chinese games market
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Asia’s leading entertainment and game expo ChinaJoy (August 1st to 4th) is quickly approaching, preceded by the global games industry conference Pocket Gamer Connects Summit Shanghai on July 30th. Ahead of the events, we’ve checked in with a handful of prominent industry professionals speaking at PG Connect’s one-day summit.
Recognising the unique features of the world’s largest, most lucrative and competitive games market, each speaker shares invaluable insight on operating within the Chinese and Asia-Pacific (APAC) regions, and how these play a central role in the global game sector.
Efrain Aldaz, the marketing director at AI-powered Apple ads and app store optimisation platform MStars.AI, highlights China’s high level of mobile game usage.
“The number of monthly active users ranks first in the world. The average daily usage time of mobile device games tops 1.5 hours,” he says.
Naturally, those metrics lay a good foundation for strategies across ad monetisation and in-app purchases (IAPs). Domestic developers “not only drive IAPs through virtual items such as props and skins but also optimise ad revenue using rewarded videos and interstitial ads”.
Of course, China’s established advertising ecosystem and payment infrastructure (such as WeChat Pay and Alipay) also help developers create user value and drive revenue.
As for unique selling points, particular content themes define Chinese games.
“From national style aesthetics to martial arts, cultivation (Xianxia), Three Kingdoms lore, and palace intrigue - these culturally resonant elements not only shape in-game narratives but also represent China’s soft power influence across global gaming,” says Aldaz.
“Many of the top-grossing titles in highly lucrative genres like 4X strategy and merge-2 are developed by Chinese companies.”
Lemon Choi
Lemon Choi, the CEO at Hyperjoy - a developer of hybrid midcore tower defence games - the impact of Chinese game developers on the global stage is noticeable.
“They are setting global trends - not just following them,” he says.
“Many of the top-grossing titles in highly lucrative genres like 4X strategy and merge-2 are developed by Chinese companies.”
Calling APAC a hotbed of genre-defining innovation, Choi sees its vast, unique talent pool as “world-class”.
Aldaz also emphasises the APAC region’s international influence, saying its “creative excellence, production quality, and cultural appeal” have made it a powerhouse, “particularly in the realms of mobile games and anime-style titles”.
He says APAC’s impact is mainly down to particular innovations from a few regions, highlighting China’s free-to-play IAP model, Japan’s gacha systems, and South Korea’s MMORPG virtual economies as primary examples.
The power of mini-games is an increasingly important factor too.
Apart from helming Hyperjoy, Lemon Choi also runs a major blog on WeChat mini-games, a market he dubs “a living laboratory for the future of mobile gaming”.
A valuable source of learning in game design and monetisation mechanics, he says this market offers lessons that are “invaluable for any developer with global ambitions.”
Indeed, the mini-game ecosystem has seen explosive growth in recent years. Dominated by WeChat and Douyin within China, this is a trend “the West is just beginning to explore”, says Choi.
His number one message to the industry is to start paying attention to this space now.
“Learn its unique rules, understand its player base, and recognise its potential to redefine the future of mobile and social gaming on a global scale.
“The term 'mini' is misleading; there is nothing small about its potential.”
One way of evangelising this to the world is using a platform like Pocket Gamer Connects.
Choi sees PG Connects Summit Shanghai as an opportunity to bridge the “significant knowledge gap” to the West by sharing his insight on the market potential that WeChat mini-games provide.
So, how should overseas game companies approach the Chinese market and its gamers?
Supercell’s senior community manager Vladislav Perge explains that Supercell is headquartered in China simply due to the company recognising that it’s the biggest mobile gaming market in the world. “Our mission is simple: to create great games that as many people as possible play for years and that are remembered forever.”
Now that’s easier said than done, especially in the face of the numerous unique hurdles presented in this region. Without specifying Supercell’s secret methodology, Perge simply emphasises the need to be cautious.
“We have to be very careful to localise, nurture, and take good care of our Chinese players and their daily needs together with our publishing partners.”

In a similar manner, Aldaz thinks that particularly small and medium-sized companies need to be intentional and accurate in how they position themselves in a game market as competitive as China’s.
As a foreign company, he adds that it’s also a must to understand and be prepared for the country’s strict regulations around content, data security, and publishing.
Going back to Perge’s point, however, most importantly, is to understand the actual players themselves. “More than translation is required. International companies need to make localised adjustments across user experience, marketing, and operations if they want to perform well.”
Finally, Aldaz mentions newer technologies, pointing out that “China is a leader in AI adoption, algorithmic recommendations, and precision-based user growth strategies.”
This not only adds complexity to this market, but also makes it one that the global industry can learn plenty from.
Tickets are now available for Pocket Gamer Connects Summit Shanghai on July 30th - book yours today. Each ticket grants an exclusive one-day entry pass to ChinaJoy (August 1st).
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