For years, China had an image problem it couldn’t shake off — synonymous with cheap exports, heavy censorship, and a state shrouded in secrecy and scandal.
That has been changing as the country strives to burnish its image, rising in soft power rankings, with domestic businesses helping Beijing secure a significant facelift.
Chinese coffee chains are popping up in New York. Chinese video games are generating billions in revenue. Even Chinese makeup, or “c-beauty,” companies are expanding into global markets.
But the most surprising factor boosting China’s cultural rise isn’t a flying car, an AI model, or a bestselling game — it’s a toy.
Labubus are everywhere: Pop Mart’s ugly-cute $30 keychain has been spotted on the bags of Rihanna and K-pop band Blackpink’s Lisa, with the plushie attracting hundreds of thousands of fans worldwide. Just a few weeks ago, Pop Mart opened its first store in Germany — the latest addition to its more than 500 stores across the globe.
Pop Mart’s viral blind boxes — items sealed in mystery packages — have become the hallmark of one of China’s most aggressive international growth stories. The company has forecast a 350% year-on-year jump in profit in the first half of the year. Goldman Sachs estimates that over the long term, Pop Mart’s sales could reach $11.3 billion globally, the same level as Lego sales.
The company is even taking on Japanese legacy brands such as Sanrio and Bandai. In 2024, Pop Mart sales rose 107%, while Sanrio, home to Hello Kitty, reported a 45% jump.
Pop Mart’s success isn’t a fluke. It’s part of a deliberate strategy that’s been capturing consumers’ hearts. With several proprietary offerings and the addictive appeal of the blind box, the brand has tapped into the sweet spot of emotional spending at a time of geopolitical and economic uncertainty.
“One of the key themes is IP, or chasing small pleasures,” said Michelle Cheng, co-Lead of the Asia consumer research team at Goldman Sachs. “It’s something the young generation loves — not just in China or Asia, but globally.”
Pop Mart isn’t alone in boosting China’s soft power. Video games, once tightly regulated by China’s government, are now exploding in popularity. Black Myth Wukong, based on the Chinese folk story “Journey to the West,” sold 20 million units in its first month globally, making it one of the fastest-selling titles of all time.
Genshin Impact, a “gacha” game, where players spend in-game currency or real-world money to obtain virtual goods (named after Japanese “gachapon”), made $2 billion in its first year on the market, according to market intelligence firm Sensor Tower. It now generates more revenue outside China than at home, with players in Japan and the U.S. leading the charge, according to data by Statista.
Home-grown innovators are transforming China’s image. Consultancy Brand Finance ranked the country second in its global soft power index this year, up a spot from 2024, overtaking the UK for the first time and sitting just behind the U.S.
Brand Finance attributed the jump to China’s strategic efforts at enhancing its global image, focus on sustainable development, stronger brands, as well as the country reopening to visitors after the pandemic.
“Finally, China has become visible, and young people are no longer attaching negative brand perceptions to China,” said Yaling Jiang, a consumer analyst. “The best outcome of these consumer products is that people can see through the negative filter of them being Chinese and see them for what they are.”
While the perceptions about the country are changing fast, it remains to be seen if a state that has historically taken a top-down approach to reshaping its image can allow its brands to speak for themselves.
