Last year, the Chinese retail book market, valued at ¥112.9 million new titles, the highest number in nearly a decade. The total retail market was about 88 percent of the 2019 level, according to OpenBook, the Beijing-based clearinghouse for publishing statistics.

OpenBook’s latest report shared more statistics: In the first three months of 2025, the Chinese retail book market grew 10.7 percent year-on-year. But by June, the open-high end-low pattern struck once again, resulting in a decline of 3.68 percent compared to the first half of 2024. Lifestyle, computer books, self-improvement/self-help, supplementary educational materials, and children’s books were the top five categories driving sales last year, growing by 39.14, 38.4, 22.81, 10.56, and 4.72 percent, respectively.

Children’s books and supplementary educational materials accounted for more than 50 percent of the market. Children’s books made up the largest segment—despite expanding at a much slower rate compared to the double-digit growth of the pre-pandemic years. These books contributed 28.16 percent to the sales pie, with around 40,000 new titles entering the Chinese book market annually to serve 286 million children and young adults.

As for promotional and sales channels, only the e-commerce channel experienced positive growth during the first half of 2025, at 47.62 percent compared to the same period in 2024. But OpenBook noted that even this channel’s growth has slowed significantly compared to previous years. Douyin (or TikTok, as it is known internationally) and Xiaohongshu (aka RedNote) remain the two most popular short-video e-commerce platforms to promote and sell books in China, especially children’s books and nonfiction titles (on such subjects as lifestyle, self-help, and family education).

During the first quarter of 2025, book sales were boosted not just by the back-to-school season but also by the buzz surrounding the Black Myth: Wu Kong video game (and the announcement of an upcoming installment, Black Myth: Zhong Kui, by the developer Game Science); the animated feature Ne Zha 2; and DeepSeek AI technology. Hence, traditional Chinese culture has received more attention on the international stage in recent months.

Record numbers of foreign visitors, taking advantage of visa-free travel policies, further amplified cultural exchanges and interest in China. Naturally, local publishers are digging deep into their own heritage for inspiration, and combining these ideas with new technologies to create unique IPs. Publishers are also developing derivative products that sell well domestically and have high potential for export. For a nation with 56 recognized ethnic groups—each with their own culture and even languages—China has no lack of folklore, legends, and traditions to inspire creativity and spur imagination.

Transformation within the book market

The Chinese book market, which is immense due to the country’s 1.41 billion population, is changing fast and is highly competitive, with around 585 publishing houses.

In the face of such intense competition, sustainability is key, says Xu Hai, vice president of the Phoenix Publishing and Media Group (PPMG). “Economic downturn slows consumption. And when it comes to books, selective purchasing is at play: art books and literature titles are not moving as fast as academic titles and test guides. As a publishing and media group, we must put our eggs in different baskets—that is, publishing in many subject categories—as a risk mitigation strategy.”

Rapid changes in China’s book distribution and marketing channels, especially with the rise of short-video livestreaming e-commerce, are just some of the challenges for Xu and his team, and for the publishing industry as a whole. “The popularity of social media is a distraction to book reading,” says Xu. “Heavy discounting exercised by the big tech companies and online retailers to push book sales is another worrying trend. It lowers the perceived value of a book, and once consumers are used to low prices they’re not willing to pay the normal price. So heavy discounts dilute both the quality of the product and the brand, to the detriment of the whole publishing industry.”

Learning about new media and novel ways of marketing to today’s tech-savvy readers who are used to social media is the way forward. “We’re holding more events to get the reading public and authors together, and we’re offering more personalized reading and purchas- ing services,” says Xu. “We’re learning, adapting, and growing with our readers, and that’s the way to grow and prosper.”

China’s vibrant children’s book market, while full of potential, comes with numerous challenges, notes Wang Qi, president and editor-in-chief of Hope Publishing House as well as vice president of the Shanxi Publishing and Media Group. “Price wars, market saturation, and social media marketing are becoming more prevalent and squeezing out the brick-and-mortar bookstores. Their rise is primarily due to content homogeneity and a lack of innovation that leads to little product differentiation.”

Price thus becomes the primary competitive advantage, creating a difficult situation that fails to meet consumer demand. “The development of new media has transformed book sales channels, with online channels affecting the performance of physical bookstores,” says Wang. The fierce competition on e-commerce platforms has further exacerbated the price war in the children’s book segment, she adds.

Technological integration is reshaping the content and publishing ecosystem, says He Lihui, chairwoman of the Hunan Publishing Investment Holding Group, the parent company of China South Publishing & Media Group (CNS). “Publishers are actively integrating AI and large language models (LLMs) to improve creative and operational efficiencies. At CNS, we are vigorously developing the Huxiang Cultural Big Model, launching the AI-powered version of the Huxiang Library book series, and restructuring our editorial, print production, and publishing processes.” (The term “Huxiang” refers to Hunan Province, which the Xiang River runs through; Hunan is sometimes called “Xiang” for short.)

“Short-form video-streaming is currently driving e-commerce traffic,” He continues. “Although its momentum has slowed in recent months, marketing is still evolving towards targeted and scenario-based engagement with audiences, thereby continuing to put pressure on traditional e-commerce.”

Value-based reading is also driving consumer preferences, He says. “Readers prefer books that combine practicality with emotional comfort. As the market shifts from knowledge acquisition to spiritual resonance, the publishing industry is expanding into a provider of knowledge services and emotional values.” Such shifts, He adds, “reflect a period of intense transformation driven by the confluence of capital, reader psychology, and technology, which present both challenges and opportunities.”

Market trends and hot topics

The Chinese government’s focus on educational resources and compulsory education reforms continues to drive demand for textbooks and supplementary educational materials. After all, this nation has the largest state-run education system in the world, with 291 million students and 18.92 million full-time teachers in more than 498,300 schools in 2023, according to the Ministry of Education. Some 274,400 kindergartens provided preschool education to 40.93 million children nationwide. In the higher education sector, 3,074 institutions saw the enrolment of nearly 47.6 million students, and about 11.79 million college graduates.

Such government policies as the double-reduction policy—to reduce the pressures of homework and after-school tutoring—aim at steering China’s heretofore exam-oriented/rote-based education system to one that fosters adaptability, creativity, and problem-solving skills, and also promotes physical activity. The latest Education Blueprint 2035 is all about building a world-class education system by 2035, particularly in science and technology, and reforming higher education and vocational education.

Meanwhile, a rising cultural pride is fueling a demand for books that blend traditional stories with modern themes, and focus on historical narratives. Thanks to reading initiatives carried out by government departments, schools, and publishers, the average number of books read annually by Chinese children, teens, and adults has risen significantly since 2010, indicating a growing appetite for leisure reading. A 2023 survey by the Chinese Academy of Press and Publication showed that the overall reading habit among Chinese adults stood at 81.9 percent, with a higher 86.2 percent among minors, up from 2022. The survey also found that in 2023, Chinese adults read an average 4.75 printed books and 3.4 e-books per person; minors read an average 11.39 books.

Category-wise, pop-science has become a major growth area in the Chinese book market in recent years. The topic accounted for 18.49 percent of China’s children’s book market in 2019 and climbed to reach more than 27 percent last year. The children’s literature segment, which has been rather stable through the years, usually holds the second spot, sandwiched between pop-science titles and picture books. Together, these three categories commanded more than 60 percent of the total children’s book market last year.

“The emergence of high-quality, original, science-based children’s books, the growing popularity of education on nature and ecology, and an increased governmental push on reading for leisure have led to its growth,” says Wang, of Hope Publishing House. “High-quality, well-planned, and branded IP-based series are particularly appealing to children. Furthermore, pop-science books are well suited to new technologies such as AR, enhanced readability, and a better reading experience. Compared to print books, integrated reading is more likely to attract children and inspire them to read more. Activities like scanning QR codes to listen to audio files or watch video clips, or clicking on built-in apps for interactive quizzes and exercises, enhance the reading experience, enrich story scenarios, and reshape the depth and breadth of children’s reading.”

Hope Publishing’s six-title Shanxi Intangible Cultural Heritage Picture Books series, for example, comes with animated clips to draw children in, while bringing new technologies to further promote and protect cultural heritage. One title in the series, The Painting, is so captivating in its storyline and print production that it was named The Most Beautiful Book in China in November 2023. The depiction of adults dressed as beasts—long-nosed raccoons, bright-haired civets, green-bearded unicorns—and walking on stilts pays homage to a traditional folk art in Shanxi Province that has been performed to celebrate and pray for a good harvest for more than 300 years.

As for what Chinese consumers like to read, Xu, of PPMG, observes that readers are concerned about the changes happening not just in China, but also around the globe. “Readers are curious about the world—which is very good—and seek to be informed on economics, finance, and geopolitical issues, for instance. And they want to know how these affect China,” says Xu, noting the popularity of such global issues as the environment, nature, and sustainability.

“Readers also want to understand more about other countries and their histories,” Xu adds, “so PPMG has published a series on the history of Turkey, the Byzantine period, and the Roman Empire to cater to such interests. We recently launched a revised edition of The Good Man of Nanking: The Diaries of John Rabe, which comes twenty-eight years after its global publication. We’re also holding special exhibitions to spread the concept of peace and to mark the eightieth anniversary of World War II.”

At the same time, Chinese readers want to learn more about their own culture, history, roots, and traditions. “As a nation with the longest continuous civilization, dating back at least five thousand years, China definitely has lots of stories to share,” says Xu. (An author himself, Xu recently published Paradigm Shifts in Chinese Publishing: A Practitioner’s Critical Perspective.) “Readers are also seeking one-of-a-kind stories and literature written by such award-winning, renowned authors as Liu Cixin, Mo Yan, Ge Fei, Lu Min, Liu Liangcheng, and Su Tong.” All these authors have called PPMG home for their masterworks.

Science fiction is one new segment that is expanding quickly in China, notes Xu, whose team at Yilin Press has released a graphic- novel edition of Liu Cixin’s The Three-Body Problem. “Fast technological changes in China are one key driver pushing this particular segment. Readers want to understand what is happening around them and they do so through books and fiction.”

New technologies are reimagining how people in China discover and engage with authors and books. The all-in-one WeChat mobile app, for instance, integrates functions for communication, shopping, and social interaction, serving more than a billion active monthly users. With the ubiquity of mobile devices and a multiplicity of social media apps, promoting and selling books on e-commerce and short-video platforms such as Douyin and Xiaohongshu have become commonplace. As a result, reader engagement via live-streaming and influencer marketing is much higher in China than anywhere else on the planet. This development is a boon for publishers, especially those looking to sell children’s books and educational materials directly and virtually to readers.

Fulfilling social responsibilities

Addressing the disparities between rural and urban areas in terms of book access and distribution is a major challenge in China, the world’s third-largest country by land area. But the situation is much less dire than it was a decade ago, thanks to the extensive mobile network coverage that enables book sales and digital reading. Also, the government has built at least 587,000 rural libraries since the launch of the Rural Library Project in 2007, and many have been upgraded to offer digital reading services. Meanwhile, publishing houses are working diligently to get books to readers in rural and remote areas and to promote reading services and book sharing.

For CNS, fulfilling social responsibilities is an integral part of its corporate culture, says He. “Our public welfare efforts are focused primarily on education equity and cultural inclusion. In 2011, we established Hunan CNS Public Welfare under the motto ‘Children’s Hearts Connect the World.’ For over a decade, we’ve continuously carried out 148 educational aid projects in revolutionary base areas and remote mountain regions of Hunan, Sichuan, and other provinces. Donations of funds and materials valued at over ¥10 million [approximately US$1.4 million] have significantly improved the reading environment and learning conditions for tens of thousands of rural children.”

A subsidiary of CNS, the Hunan Xinhua Bookstore, donates hundreds of thousands of high-quality books annually. “We also help rural schools build sustainable platforms for sharing reading resources, and we support the development of rural bookstores,” says He. In 2024, she adds, the Hunan Xinhua Bookstore invested. some ¥80 million (US$11.23 million) to build smart playgrounds at more than 100 primary and secondary schools for the holistic physical and mental growth of young people.

“We believe that reading is a powerful force for changing lives and enlightening minds,” He says. “We will continue to invest in public welfare, allowing the light of knowledge to illuminate more children, especially those living in resource-poor areas and those in need of special care.”

In recent years, representatives from Hope Publishing House have held over 300 major reading events, toured more than ten provinces and municipalities across China, and visited many impoverished mountain regions and revolutionary base areas. “Such events were accompanied by book donation campaigns,” says Wang, adding that her company has published Tibetan, braille, and large-print editions of such books as Qiu Shanshan’s Swimming Across the Moon River, and has brought books to visually impaired children and those living in remote areas. “On special occasions such as World Book Day and Children’s Day, we hold book-donation and book-sharing activities. These are all part of fulfilling our mission and our social responsibility as a children’s book publishing company.”

Besides organizing some 6,000 reading promotion events in 2024 and joint charity campaigns with provincial departments, PPMG has been working hard on corporate sustainability, striving for more efficient use of natural resources and energy. “One priority for us is minimizing the negative impact of our production operations, such as the disposal of all types of waste,” says Xu. The company strictly monitors its greenhouse gas emissions through a low-carbon operating model. “This is about contributing to our nation’s climate strategy towards building a greener future.”

An innovative system for sharing and recycling logistics containers has been implemented at PPMG’s distribution subsidiaries since 2009. “The containers circulate between our logistics center and more than three hundred distribution outlets across Jiangsu Province,” Xu says. “Our system aims to reduce packaging irregularities and material waste while improving the logistics of fragile and complex deliveries. Compared to using cardboard boxes or kraft paper for packaging, this system has increased our overall supply chain operational efficiencies by more than thirty percent while significantly reducing waste emissions.”

Strategizing and moving forward

At CNS, “culture plus technology” is the engine driving the development of new products, services, and business models. “First, we need to develop high-quality content and embrace the integration of digital and intelligent technologies,” says He. “We continue to invest in digital upgrades and revitalizing our core content resources, such as the 702-volume Hunan Library. Going forward, we will vigorously develop media-rich digital products, covering such areas as classic masterpieces, family education, and campus reading. And we will actively explore a new AI-driven educational services model.”

Second, He and her team are building a stronger publishing platform and a thriving reading ecosystem. “We are integrating resources within our group and expanding our digital platform matrix, such as Rednet Moment, Yueda Education, Morning Video, and Kuaidianting, which has a total user base of over 100 million,” He says.

The third step is to innovate the CNS publishing industry chain and enhance the reading experience. He says: “We are developing both online and offline platforms in a coordinated manner to strengthen our publishing system. Online, we’re building an efficient new media marketing matrix to target readers precisely through such methods as livestreaming and scenario-based e-commerce. Offline, we’re leveraging branded reading events—using CNS’s Yuelu Book Fair, for instance—and introducing smart services in physical bookstores to enhance the reading public’s immersive reading experience. At the same time, we’re accelerating the development of smart printing and modern logistics systems for faster delivery.”

The solution to today’s highly competitive marketplace, says Wang, of Hope Publishing House, “is for publishers to focus on original works, explore unique and diverse topics, and keep improving content quality. As for children’s book publishers, we must publish more titles that cultivate the soul and enlighten the mind—thereby meeting the needs of children, parents, and educators. We must also adopt a hybrid online and traditional marketing approach to drive long-term growth in book sales. We need to plan our marketing and distribution campaigns effectively to ensure maximum exposure to target and attract the right readers.”

For Hope Publishing House, thematic publishing is one path to differentiation. “We want to find new masterpieces for the era we’re in,” says Wang. She believes that great publications must follow the pulse of the times closely, reflect social realities, and disseminate the right values. “Titles such as Zeng Youqing’s Golden Pearl Mamie Xiao Zhaxi, Qiu Shanshan’s Swimming Across the Moon River, Ma Sanzao’s The Rain of Cijiang, and Zeng Weihui’s Chinese Mother address the spiritual strengths of extraordinary people, and will, in turn, provide spiritual strength to readers. These works are characterized by profound insights, exquisite illustrations, and meticulous production.”

Golden Pearl Mamie Xiao Zhaxi and Swimming Across the Moon River were, respectively, the 2022 and 2024 winners of the 16th and 17th “Five One Project” Outstanding Works Award for Socialist Cultural and Ethical Development. Golden Pearl Mamie Xiao Zhaxi, a children’s novel, tells the story of Tashi, a Tibetan shepherd boy who, after his parents’ death, is rescued by the People’s Liberation Army and ultimately grows up to become a soldier. “At Hope Publishing House, we consistently uphold a people-centric creative philosophy in our title selection, production planning, and publishing processes,” says Wang. “Thematic publishing will be our top priority going forward.”

Rights sales have increased over the years at Hope Publishing House. “With many of our publications revolving around universal themes—such as childhood, courage, growth, and love—we are finding more rights buyers, especially in countries involved in the Belt and Road Initiative,” says Wang. “We definitely hope to grow bigger and stronger, just like the tree in our company logo, and to be fruitful in expanding our program in China and abroad.”

There will always be readers out there, says Xu, of PPMG. “But how and where to reach them and how to cater to their needs are the pertinent questions, requiring fast responses in marketing and distribution and proactive publishing planning.” That brings Xu to the need to tweak the workings of PPMG to suit new market demands and shifts in consumer preferences. “We must experiment with new ideas and yet be practical. We also need cohesiveness in the publishing industry to move as one in tackling inherent challenges so that we may survive and grow together.”

Xu believes that the future of PPMG lies with its people. “We have many talented editors who have an eye for quality manuscripts and great authors, and our management is led by professionals who have risen through the ranks and know the inner workings of a publishing house. But for future growth, the whole industry needs more talent and fresh blood that better understands the new technologies—AI, automation, and language models, for instance. Fortunately, publishing receives a lot of government support. At the same time, the government has been supporting R&D at every level while our education system produces a huge pool of new graduates every year. New talents are out there. We just need to find the right incentives to entice them to join the publishing industry, which is often seen as traditional and less exciting.”

With regard to R&D investment, in 2024 China spent no less than ¥3.6 trillion (some US$505 billion), an 8.3 percent increase over the previous year, according to the Bureau of Statistics. China’s strong growth in basic research has brought breakthroughs in quantum technology, life science, materials science, and space science. This has boosted academic publishing in books and journals. Publishers are simultaneously enhancing their editorial and peer-review processes to enhance the quality of research papers while reducing retractions and misconduct caused by the pressure to publish.

Chinese publishers are also increasing their own R&D efforts to leverage big data and AI—the Huxiang Cultural Big Model from CNS being one good example. The digital platforms they’re creating will facilitate editorial collaboration, faster content dissemination, and improved reader experiences. The use of cognitive technologies and discoverability tools is all about personalizing content and deepening reader engagement. In fact, leveraging AI for editing, proofreading, content development, and predicting reading or search preferences is nothing new to Chinese publishers, who view the technology positively and not fearfully. For them, AI is not about replacing humans. Instead, it is about properly managing and training AI to be an efficient and reliable tool for the publishing industry in content editing, generation, and planning.

In short, the Chinese book industry is transforming, surely and steadily. Publishing houses are becoming more digitized, diversified, hybridized, and integrated in their online and offline marketing and distribution platforms, so they can offer domestic consumers com- pelling, enhanced, and engaging content and user experience. The industry’s players and homegrown authors are now busy trawling through their rich culture and long history to create unique content and innovative products that promise better sales, higher visibility, and greater potential for copyright trading.

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