Chinese Firms Turn Japanese Aesthetics Into Domestic Hits

The analysis notes that Chinese firms, long responsible for introducing Japanese aesthetics to overseas consumers, are now targeting Japanese youth with products that blend Chinese production with Japanese-style design. The article cites a 900,000-strong Chinese diaspora in Japan as a cultural bridge, but emphasizes that the push is commercial rather than community-driven.

The Diplomat Magazine

• Genshin Impact – Developed by Shanghai-based miHoYo (branded internationally as Cognosphere), the role-playing game launched in 2020 and generated $10 billion in revenue by the end of 2025, becoming the fastest mobile game to reach that milestone. It ranked first in Japan as late as 2024 and stays within the top 20 for new downloads, yet only 5 percent of its total downloads come from Japan.

The Diplomat Magazine

• PopMart’s Labubu dolls and Miniso’s licensed Japanese characters (e.g., Chiikawa, Hello Kitty) use gacha-style blind boxes to drive repeat purchases. Miniso operates more than 8,000 stores in 110 countries and plans to open 900-1,000 new stores each year.

The Diplomat Magazine

• TopToy, a Miniso-owned toymaker, entered Japan in 2025 following PopMart’s market entry in 2022, applying the same formula.

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• Mellojoy created a squishy-toy craze among young Japanese women by leveraging the “punipuni” aesthetic.

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• BYD’s Racco – The Chinese electric-vehicle maker launched the first foreign-made Japanese kei car, selling over 1,000 units within two weeks of release. This prompted Suzuki to introduce the e SKY, an electric kei car powered by BYD batteries.

The Diplomat Magazine

The piece argues that Japanese companies, historically confident in the cultural and regulatory uniqueness of the kei-car segment, now face direct competition from affordable, Japanese-styled Chinese products. Suzuki’s e SKY launch is presented as a concrete response to BYD’s market entry, indicating a shift toward collaboration with Chinese suppliers.

The Diplomat Magazine

According to the article, the “Cool Japan Fund” initiative—intended to promote Japanese culture abroad—has underperformed, while Chinese firms succeed by offering scalable, low-cost products that embody Japanese aesthetics. The trend suggests that Japanese consumers may increasingly prioritize accessibility and price over the origin of cultural symbols, reshaping domestic market dynamics and prompting Japanese firms to rethink strategies that once relied on cultural exclusivity.

The Diplomat Magazine