Japanese game company Sega's store in Beijing Choayang Joy City Photo: Zhang Yiyi/GT

Japanese video game company SEGA opened its first store in Beijing on Saturday, with the outlet attracting fans with a wide range of merchandise featuring popular items of intellectual property (IP). Even on Monday at lunch time, although it was a work day, customers were browsing and buying when the Global Times visited. 

Amid tensions in China-Japan relations caused by Prime Minister Sanae Takaichi's erroneous remarks, the development of Japanese animation and entertainment industries remains closely tied to China's huge consumer market, prompting Japanese companies to continue expanding their presence in China, Chinese analysts said.

According to the Beijing Youth Daily, the store is SEGA's second permanent official outlet in China and its first comprehensive flagship store in North China, designed specifically for gaming enthusiasts and fans of Japanese animation and related subcultures.

"SEGA is a legendary gaming company with a long history. It created many iconic game IPs in the late 20th century and has expanded its business beyond consoles and games into related merchandise, animation and other derivative products," said Gao, a visitor and fan of Japanese animation and gaming culture who came to check out the store.

Liang, a 25-year-old fan of Japanese animation and gaming culture, told the Global Times that the store drew crowds on its opening day on Saturday, with many consumers waiting in line and professional cosplayers performing at the launch event. 

"The Chinese market is definitely appealing to Japanese companies. In major cities such as Beijing and Shanghai, anime, gaming and related cultural products have become increasingly visible in shopping malls," Liang said.

Square Enix, another major Japanese game company, opened a new official flagship experience and merchandise store in Shanghai in the first half of 2026, according to Kyodo News.

CEO Zhang Yi of iiMedia Research told the Global Times on Monday that China remains one of the most important overseas markets for Japan's cultural and entertainment industry, with the growth of the anime and gaming-related economy heavily relying on China's large consumer base.

Given the rise of emotional consumption, Chinese consumers' demand for IP merchandise and in-person experiences continues to grow, and the popularity of Japanese gaming companies' flagship stores in China shows that Japanese IPs maintain strong appeal among Chinese consumers, Zhang said.

He noted that Japan's domestic entertainment market has entered a slower-growth phase, while China offers a combination of a vast market, rapid growth and strong purchasing power. Revenue from premium IP products in China has become an important source of support for Japanese companies' global businesses.

Japanese businesses have sought to maintain ties through exchanges amid diplomatic tensions. The China International Supply Chain Expo attracted 10 Japanese business delegations, the largest number in Asia. Participants included the Japan Business Federation (Keidanren), the Japan Chamber of Commerce and Industry, the Kansai Economic Federation and the Japan-China Economic Association, according to Yuyuantantian, a social media account affiliated with the China Media Group.

Lü Chao, dean of the Institute of US and East Asian Studies at Liaoning University, told the Global Times that Japanese game companies' expansion into China and potential visits by Japanese business groups reflect the appeal of the Chinese market. However, he said that stable political ties and mutual respect are key to economic cooperation, which can only return to the correct path when the Japanese government sincerely reflects on its mistakes and makes practical actions to mend its ways.