Monkeys, Gods, and China's Untapped Digital Potential
China’s Digital Surge sees Local Growth and Global Impact
China’s digital landscape is evolving. With games like Black Myth: Wukong and projects like DeepSeek on the horizon, the country’s creative technical industries are starting to catch up to its lead in tech manufacturing and e-commerce. There’s two components to the rise of Chinese gaming, animation, and film sectors: First is a a shift toward stronger domestic production, and second is China finding ways to export its digital products in a global market traditionally dominated by the United States (and the soft power of the Hollywood blockbuster).
I finally got around to playing both the domestic and international versions of Black Myth: Wukong, and I found that they’re essentially the same. The gameplay is almost identical, with only a few tweaks in the international release aimed at appealing to global audiences. More than 90% of the game’s players are based in China, despite its success abroad. This highlights China’s growing ability to not only create globally competitive products but also to meet the demands of its own rapidly expanding digital market. Black Myth: Wukong shows that domestic success doesn’t necessarily require foreign markets—it can thrive without them, even as it finds international recognition.
This shift is also playing out in other digital media. I took my kids to see Ne Zha 2 this weekend, a movie that has dominated the box office in China, with over 90% of its audience coming from within the country. The cute Lotus god has an ungodly number of marketing tie-ins on Chinese social media right now. There’s plenty of media to consume in China, but I’ve never seen Chinese audiences turning to locally produced content so enthusiastically. There is a growing appetite among Chinese consumers for content that reflects their culture. As China continues to produce more of its own blockbusters, it’s likely that fewer foreign films and games will make it to the Chinese market in the future. I’m just happy to not be dragged along to another Avengers movie.
Looking at global digital export numbers for 2023, China is already a significant player. The country exported $207 billion in digital services last year, just behind the U.S. and India. But more important than China’s current standing is the fact that it’s on track to produce more and more of the content it once relied on importing. Rednote, a Chinese app made for the domestic market, unexpectedly gained traction internationally after the TikTok drama in the U.S. Similarly, Temu, a China-based e-commerce platform, has become a household name in the U.S. The rise of these products shows how China is establishing itself not just as a producer of cheap goods, but as a powerhouse of digital innovation that can thrive in foreign markets.
What’s fascinating about this shift is China’s ability to regulate its digital space in a way that other countries can’t. While Western countries often deal with a complex web of regulations across different states or regions, China has the advantage of centralized control. This has allowed the country to steer its creative industries in ways that cater to both domestic tastes and international markets. Black Myth: Wukong is a perfect example: while the Chinese version sticks to local standards, the global version ramps up fantastical elements to cater to international audiences. This dual approach, shaped by China’s unique regulatory environment, is something that gives Chinese creators an edge in the global market.
By controlling what gets produced, how it’s regulated, and how it’s consumed, China is not only producing more of its own digital content, but also setting the stage to become a major player in global exports. It’s no longer about simply exporting Chinese products—it’s about strengthening China’s digital economy and reducing its dependence on imports, particularly in industries like film, gaming, and e-commerce. The digital future for China isn’t just about making more things for export, but about meeting the demands of a rapidly growing domestic market and establishing global relevance at the same time.
As the country’s digital industries continue to mature, we’ll likely see more Chinese products—whether games, films, or apps—take a larger share of the global market. But more importantly, China’s growing digital production capacity will mean it will need to import less from the U.S. or other countries. What’s happening in China is a reflection of a much broader shift, where digital sovereignty and local production are taking the lead.