Japan's lucrative anime exports to China face unprecedented disruption following controversial remarks about the Taiwan region by Japanese Prime Minister Sanae Takaichi. Two major film releases – Crayon Shin-chan the Movie: Super Hot! The Spicy Kasukabe Dancers and Cells at Work – have suspended their Chinese theatrical runs indefinitely, with industry analysts estimating losses exceeding $150 million in projected revenue.
The crisis comes despite a record-breaking November 14 opening for Demon Slayer: Kimetsu no Yaiba – The Movie: Infinite Castle, which saw box office earnings plummet 72% within days of Takaichi's statements. This reversal highlights the fragile interdependence between cultural exports and cross-strait diplomacy in East Asia.
Before the controversy, 2025 had been a banner year for Japanese animation in China. Successful releases like Miss Kobayashi's Dragon Maid and the Evangelion finale demonstrated steady market growth, with anime-related merchandise sales growing 18% year-over-year through October.
The freeze now extends beyond cinema screens, disrupting planned theme park collaborations in Shenzhen and Shanghai, plus e-commerce partnerships with Alibaba and JD.com. Industry group Anime Producers Association of Japan called the situation 'a wake-up call for cultural diplomacy,' while Tencent Video has postponed three licensed anime series indefinitely.
