Purpose – This study explores the utilization of Chinese traditional culture in animation, with a focus on film derivatives. The study analyzes recent growth and challenges in the Chinese animation industry and aims to effectively utilize Chinese culture in developing animation derivatives. Drawing insights from US and Japanese models, the initiative aims to develop a unique Chinese animation industry, with the goal of improving global competitiveness, cultural impact, and market expansion. Design/Methodology/Approach – This study adopts a research methodology primarily focused on deeply mining the rich resources of Chinese traditional culture, coupled with referencing the mature animation industry chains of the United States and Japan, to develop a more ethnically distinctive animation film industry chain in China. The main research methods involve literature review and case analysis, aiming to explore key issues and solutions in the development of ethnic-oriented animation film derivatives in the Chinese animation film industry. Findings – China’s animation industry is progressing, yet it faces challenges in derivative development, which hinders sustained growth. Leveraging its abundant traditional culture can provide a unique competitive advantage. Integrating insights from established US and Japanese animation industries with Chinese culture is crucial for fostering a more ethnically distinctive animation industry in China, which holds significant promise for future development. Research Implications – The proposal innovatively leverages China’s traditional culture for animation growth, providing insights for sustainable development. It highlights the significance of animation derivatives, guiding commercial exploration. By promoting Chinese culture, it enhances the global competitiveness of animation, facilitating international cultural exchange.
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