Page 322 - 2019 White Paper on the Business Environment in China
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9 White Paper on the Business Environment in China
estimated by 2025, the scale of the Chinese sports industry However, soccer is a long-term investment. Compared
is expected to reach the goal of 5 trillion yuan (US$773.9 to soccer, winter sports started to develop even later in
billion) (Xinhua, China’s Sports Reaches). China and even now public attention is not very high. 2022
Beijing Winter Olympics is a good opportunity to develop
China’s sport industry did not really exist 30 years ago, winter sports. The scale of sports in China is expected to be
but now it is changing rapidly though it is still not mature worth 5 trillion yuan, and winter sports will generate one
enough. NBA, China’s most watched league online, is trillion yuan. Therefore, it is a huge market with enormous
working with CCTV, China’s central TV, and Tencent, one potential. Currently, there are 15 million skiing lovers, 600
of China’s tech giant, to capture more fans in different to 700 skiing holiday villages. Besides the above traditional
digital platforms. But there are also some sport activities sports, there are also some other sports such as America
that are less known by Chinese people. However, the football and e-sports that are rather new to Chinese people
situation is improving. Another booming business area is (Sun and Guan).
marathons, which have gained popularity in recent years
across the country. According to a report by the Chinese E-sports
Athletic Association (CAA), the number of marathons with
more than 800 participants has increased fiftyfold from The Chinese gaming industry saw impressive business
22 in 2011 to 1,102 in 2017. CAA also predicts the country growth in domestic markets in 2018. China is one of the
will host 1,900 marathons and the industry’s size will world’s largest games market and had 530 million gamers
grow to 120 billion yuan by the year 2020. Developing a during the period, an increase of 4 percent year-on-year.
sports industry is also on the agenda for Chinese regional Chinese online-game makers saw robust growth in
governments. Hainan province secured 35 billion yuan domestic markets with sales revenue exceeding 79.8 billion
of investment in its sports industry park in Sanya in 2018, yuan during the period, while sales in overseas markets
including a water sports town, two premium themed rose to 4.6 billion yuan as more and more domestic game
hotels, sports parks, and games and competitions. The companies begin to woo international players (Xinhua,
same year, Jiangsu province also released four documents Chinese Games). The number of e-sports players in China
on the development of its water, aviation, outdoor have been growing at an annual average of more than
and snow sports. The private capital markets have also 20 percent over the last three years, and will exceed 430
been active in sports-related investment. According to million in 2018. The e-sports market revenue is mainly
Newseed’s database, a service company for startups generated by gaming competitions while live broadcasts
and investors, from April to early August there were 17 of people playing video games contributed less, according
financing activities in sports-related companies attracting to the report. In 2017, the e-sports market reached 77
more than 5.9 billion yuan. Suning Sports, the sports billion yuan. It is estimated that more than 500 gaming
branch of e-commerce giant Suning, alone netted $600 competitions were held in China in 2017, the report said.
million in its A-round financing, while Ali Sports, Alibaba’s (Xinhua, China’s ESports).
sports branch, and iQiyi Sports, online entertainment
service provider iQiyi’s sports channel, attracted 1.2 billion Chinese e-sports club Royal Never Give Up conquered
yuan and 500 million yuan’s respectively (Ren, Explosive). the world in May 2018. The club was crowned world
champion at the League of Legends Mid-Season
China’s sport industry began reforming in 2014, and it Invitational in Paris, a milestone for the booming sector,
is expected to contribute 5 percent to the country’s GDP which continues to produce stunning economic and
in 2025. The sector needs global perspective for long-term participation figures. China’s e-sports market value
investment. Sina Sports, a leading original sport content reached five billion yuan (US$780 million) in 2017, and
maker, has witnessed rapid development of sports in grew to 8.48 billion yuan in 2018. By 2020, the market value
the recent years. Jacques-Henri Eyraud, CEO Olympique is expected to exceed 20 billion yuan. In 2017, there were
de Marseille, is planning to bring France’s soccer to 250 million Chinese gamers, with that number expected
China, especially after France won the 2018 World Cup to hit 300 million by 2020. Currently, North America (the
championship. He said he saw there were many Chinese US and Canada) and China are the two major pillars of the
wearing France’s team shirts during the World Cup, which global e-sports industry, accounting for 37 percent and 15
made him realize that it is possible to build a close China- percent of the market respectively, according to the report.
France soccer friendship. However, in 2016, China’s e-sports income growth rate hit
56 percent, four percent higher than the global average,
322
estimated by 2025, the scale of the Chinese sports industry However, soccer is a long-term investment. Compared
is expected to reach the goal of 5 trillion yuan (US$773.9 to soccer, winter sports started to develop even later in
billion) (Xinhua, China’s Sports Reaches). China and even now public attention is not very high. 2022
Beijing Winter Olympics is a good opportunity to develop
China’s sport industry did not really exist 30 years ago, winter sports. The scale of sports in China is expected to be
but now it is changing rapidly though it is still not mature worth 5 trillion yuan, and winter sports will generate one
enough. NBA, China’s most watched league online, is trillion yuan. Therefore, it is a huge market with enormous
working with CCTV, China’s central TV, and Tencent, one potential. Currently, there are 15 million skiing lovers, 600
of China’s tech giant, to capture more fans in different to 700 skiing holiday villages. Besides the above traditional
digital platforms. But there are also some sport activities sports, there are also some other sports such as America
that are less known by Chinese people. However, the football and e-sports that are rather new to Chinese people
situation is improving. Another booming business area is (Sun and Guan).
marathons, which have gained popularity in recent years
across the country. According to a report by the Chinese E-sports
Athletic Association (CAA), the number of marathons with
more than 800 participants has increased fiftyfold from The Chinese gaming industry saw impressive business
22 in 2011 to 1,102 in 2017. CAA also predicts the country growth in domestic markets in 2018. China is one of the
will host 1,900 marathons and the industry’s size will world’s largest games market and had 530 million gamers
grow to 120 billion yuan by the year 2020. Developing a during the period, an increase of 4 percent year-on-year.
sports industry is also on the agenda for Chinese regional Chinese online-game makers saw robust growth in
governments. Hainan province secured 35 billion yuan domestic markets with sales revenue exceeding 79.8 billion
of investment in its sports industry park in Sanya in 2018, yuan during the period, while sales in overseas markets
including a water sports town, two premium themed rose to 4.6 billion yuan as more and more domestic game
hotels, sports parks, and games and competitions. The companies begin to woo international players (Xinhua,
same year, Jiangsu province also released four documents Chinese Games). The number of e-sports players in China
on the development of its water, aviation, outdoor have been growing at an annual average of more than
and snow sports. The private capital markets have also 20 percent over the last three years, and will exceed 430
been active in sports-related investment. According to million in 2018. The e-sports market revenue is mainly
Newseed’s database, a service company for startups generated by gaming competitions while live broadcasts
and investors, from April to early August there were 17 of people playing video games contributed less, according
financing activities in sports-related companies attracting to the report. In 2017, the e-sports market reached 77
more than 5.9 billion yuan. Suning Sports, the sports billion yuan. It is estimated that more than 500 gaming
branch of e-commerce giant Suning, alone netted $600 competitions were held in China in 2017, the report said.
million in its A-round financing, while Ali Sports, Alibaba’s (Xinhua, China’s ESports).
sports branch, and iQiyi Sports, online entertainment
service provider iQiyi’s sports channel, attracted 1.2 billion Chinese e-sports club Royal Never Give Up conquered
yuan and 500 million yuan’s respectively (Ren, Explosive). the world in May 2018. The club was crowned world
champion at the League of Legends Mid-Season
China’s sport industry began reforming in 2014, and it Invitational in Paris, a milestone for the booming sector,
is expected to contribute 5 percent to the country’s GDP which continues to produce stunning economic and
in 2025. The sector needs global perspective for long-term participation figures. China’s e-sports market value
investment. Sina Sports, a leading original sport content reached five billion yuan (US$780 million) in 2017, and
maker, has witnessed rapid development of sports in grew to 8.48 billion yuan in 2018. By 2020, the market value
the recent years. Jacques-Henri Eyraud, CEO Olympique is expected to exceed 20 billion yuan. In 2017, there were
de Marseille, is planning to bring France’s soccer to 250 million Chinese gamers, with that number expected
China, especially after France won the 2018 World Cup to hit 300 million by 2020. Currently, North America (the
championship. He said he saw there were many Chinese US and Canada) and China are the two major pillars of the
wearing France’s team shirts during the World Cup, which global e-sports industry, accounting for 37 percent and 15
made him realize that it is possible to build a close China- percent of the market respectively, according to the report.
France soccer friendship. However, in 2016, China’s e-sports income growth rate hit
56 percent, four percent higher than the global average,
322
