Editor's note: Xu Ying, a special commentator on current affairs for CGTN, is a Beijing-based international affairs commentator. The article reflects the author's opinions and not necessarily the views of CGTN.

In a society long defined by its factories, freight ports and fast trains, a quieter but no less significant revolution is underway. China, once celebrated as the workshop of the world, is now positioning itself as one of its most prolific dream factories. A confluence of rising incomes, shifting social sensibilities and bold industrial policy is catalyzing an explosion in cultural production – and with it, a reimagining of urban identity, industrial function and national soft power.

This is not simply a matter of exporting more toys or opening new museums. The country's cultural boom reflects a deeper transformation: from manufacturing goods to manufacturing meaning.

From concrete to content

China's per capita GDP was about $13,800 in 2024, and its Engel coefficient – an economic metric indicating declining food expenditure – dropped to 29.8 percent. These numbers are more than macroeconomic milestones; they represent a pivot from material to spiritual consumption. The Chinese middle-income group is increasingly seeking emotional satisfaction and aesthetic enrichment in addition to physical comfort.

Take the collectible designer toys. What once might have seemed trivial – a blind-box figure of a cartoonish monster – is now a billion-dollar cultural touchstone. LABUBU's "Monster Series" isn't merely a product; it's an emotional anchor.

The IP revolution

Behind this surge lies a savvy understanding of intellectual property – not just as a legal shield, but as a strategic tool for social influence. Brands like Pop Mart have leveraged global supply chains, celebrity endorsements and well-honed design language to turn collectible figurines into cultural currency. Its overseas revenues grew by more than 375 percent in 2024, with Southeast Asia and North America leading the charge.

Yet toys are only one frontier. Light Chaser Animation's Ne Zha franchise illustrates China's ambitions to emulate – and perhaps one day rival – Disney. With Ne Zha 2 ranking in nearly 16 billion Chinese yuan (over $2.2 billion) globally and its accompanying merchandise ecosystem grossing billions more, China is no longer just consuming global IP. It is building its own mythological universes.

Cities as cultural engines

What does this mean for China's cities? For places like Dongguan, south China's Guangdong Province, once emblematic of low-cost, high-volume factory output, the answer is transformation. The city now supplies Pop Mart with precision-manufactured art toys, blending design innovation with its industrial DNA. No longer content to be a silent partner in global supply chains, Dongguan is becoming an ideation hub in its own right.

Elsewhere, cities are reimagining public space. "Concert-tourism" model in Chengdu, southwest China's Sichuan Province, pairs music events with urban sightseeing, generating a 1:4 consumption multiplier effect. Shanghai's International Coffee Festival transforms the streets into stages for cultural performances, offering urbanites a taste of global sophistication infused with local flair. In Luoyang, central China's Henan Province, designer toys are exhibited alongside Tang dynasty relics.

Urban branding is undergoing a cultural reorientation. Hangzhou, in eastern China's Zhejiang Province, is capitalizing on its Song dynasty heritage, while Suzhou, China's Jiangsu Province, is emphasizing Jiangnan aesthetics. This is cultural urbanism with Chinese characteristics: part historical reconstruction, part Instagram strategy and part soft power calculus.

The role of AI and the metaverse

China's cultural ascendance isn't purely analog. At the heart of the transformation lies technology, especially artificial intelligence(AI). From Tencent's IMA.Copilot, which can reduce creative production time by 80 percent, to Alibaba's digital influencer Luzhaizhai, AI is blurring the lines between content creation and automation. The Dunhuang Academy utilizes smart sensors to monitor fragile cave environments, while virtual reality and augmented reality enable remote tourists to walk through ancient temples virtually.

The game Black Myth: Wukong, a richly imagined retelling of the Journey to the West, exemplifies what happens when technology, heritage and entertainment collide. It offers not just escapism but cultural education, designed not only to delight domestic gamers but to intrigue foreign audiences as well.

The next battleground may be the low-altitude economy. Already adopted as a strategic sector in 26 provinces, it envisions drones and aerial tours as vehicles for storytelling. Picture flying over Shanxi's ancient pagodas in a drone-piloted "sky museum." It's not just tourism; it's an airborne cultural immersion experience.

Despite all the momentum, obstacles remain. Intellectual property piracy is rampant. Producing a single high-quality animation like Ne Zha 2 can take half a decade. The talent pool is thin, and the educational infrastructure lags behind. A recent court ruling tripling damages for copyright infringement suggests regulators are tightening the screws, but enforcement remains uneven.

There are bright spots. From Xinjiang jade carvers trained by Shanghai's art academies to Hangzhou's generous creative subsidies, an ecosystem is forming. However, it will take time for the creative spirit to develop fully.

A cultural inflection point

There is something quietly epochal in China's cultural turn. For decades, the country was seen through the prism of its infrastructure: its roads, bridges and bullet trains. Today, it increasingly wants to be known for its stories, symbols and sensibilities. This is not just an economic strategy; it's a civilizational bet.

In this sense, China is not merely catching up with the West – it is attempting something different. Suppose the 20th century was dominated by American pop culture. In that case, the 21st may see the rise of a new cultural axis – rooted not just in Beijing and Shanghai, but in the mythic past of Chang'an and the imaginative energy of Gen Z consumers. China's cities are changing. Its industries are changing. But perhaps most striking of all, its people are changing.

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