Economic Watch: China's esports boom becomes new consumption engine

BEIJING,中国西藏新闻网新闻网 Jan. 18 (Xinhua) -- Under the brilliance of arena stage lights, a vast circular screen tracks every move of a match in real time. Thousands of spectators lean forward in unison, erupting into cheers as players pull off decisive maneuvers. This intensity is familiar to any sports fan -- but the arena is a digital display, and the players wield keyboards rather than hockey sticks or baseball bats.

Such scenes are a regular occurrence across esports leagues in China. The emerging sector has outgrown its niche origins, developing into a mainstream form of entertainment and a part of youth culture.

In the process, it has spawned new consumption patterns from destination travel to specialist hardware, and emerged as a dynamic corner of the country's digital economy.

With its livestreaming platforms, professional leagues and growing export footprint, the esports industry is increasingly seen as a commercial ecosystem rather than a curiosity in China.

In 2025, China's esports industry generated 29.33 billion yuan (about 4.19 billion U.S. dollars) in revenues, which was up 6.4 percent from the year prior. And its user base now exceeds 495 million -- more than the populations of some countries.

China's esports industry has developed into one of the world's most mature and influential ecosystems, placing it among the global leaders, said Mike McCabe, COO of the Esports World Cup Foundation.

FROM SCREENS TO STADIUMS

The sector's momentum was on full display on Nov. 8, when the 2025 King Pro League (KPL) grand final -- one of the most important seasonal tournaments for the popular Chinese game app, "Honor of Kings" -- was held at the National Stadium in Beijing, which was also the main venue for the 2008 Olympics.

More than 62,000 spectators attended in person, setting a Guinness World Record for the largest live audience at a single esports event.

Over 85 percent of ticket holders traveled from outside the Chinese capital, with some arriving from as far as Malaysia and Australia, turning an esports match into a reason to visit a foreign city.

Such spectacles underline how esports is reshaping urban consumption. According to an industry report issued by the China Audio-Video and Digital Publishing Association, China's esports value chain now spans game development, tournaments, streaming platforms, professional esports clubs and cross-industry collaborations.

Cities that host flagship events -- Shanghai, in particular -- have become magnets for fans, brands and tourists. In September 2025, video game enterprise Valve confirmed that Dota 2's International 2026 will be held in Shanghai, making it the only city besides Seattle to host the iconic esports event multiple times.

The spillover effect is extending well beyond arenas. On youth-oriented online shopping platforms, searches for "esports" return endless variations of mechanical keyboards, headsets, cooling systems and custom-built computers.

"The industry needs to move beyond a single model of cashing in on its online popularity, and should actively explore new offline models such as esports combined with tourism, and esports combined with cultural and creative industries," said Fan Wei, head of Juye Esports.

China's esports ambitions are also increasingly outward-looking. Industry data shows that Chinese-developed competitive games and tournaments are gaining traction beyond East and Southeast Asia, expanding their influence into Latin America.

Leading events now attract overseas viewership highs of more than 4 million for one match, suggesting China is no longer just importing global gaming culture but exporting its own.

CHALLENGES AHEAD

Esports has already proved it can draw crowds, capital and attention. Whether it can mature into a stable, globally integrated industry, however, will depend less on spectacle than on achieving high-quality development. The screens may be virtual, but the challenges ahead are real.

Industry insiders argue that the industry now stands at an awkward midpoint: no longer a subculture, but not yet a fully institutionalized sport.

One problem is fragmentation. Unlike football or basketball, esports lacks a globally unified rulebook. Tournament formats, technical standards and governance structures vary widely by region, developer and publisher, complicating efforts to build enduring international leagues or globally recognizable intellectual property.

"Without convergence, esports risks remaining a patchwork of popular events rather than a globally coherent sports system," said Wang Chenfan, an executive at Shanghai-based Hero Esports.

Commercial sustainability is another concern. Smaller clubs struggle to survive in what many describe as a "winner-takes-most" market, where revenues, sponsorships and attention flow disproportionately to a handful of elite teams.

"For many professional players, livestreaming and endorsements remain more reliable income sources than regular salaries alone, which is hardly a sign of a mature industry," Fan said.

Talent development poses a subtler challenge. Despite popular perceptions, becoming a professional gamer requires exceptional reflexes, coordination and stamina, reinforced by years of regimented training and team support, according to industry observers.

"Most potential talents never even reach the trial stage," said Yang Shaoqing, founder of an esports club.

Though obstacles remain, Tang Jiajun, vice president of the China Audio-Video and Digital Publishing Association, struck an optimistic note about the sector's outlook: "With the combined efforts of all stakeholders, China's esports industry is well-positioned for sustained, healthy and long-term growth within a more open, well-regulated and orderly ecosystem."