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… disrupted economic activity, "the current slump is broad-based and has accelerated notably since July [2025]," Mizuho Securities senior China economist Serena Zhou wrote in a note in mid-November.
In Foshan, officials are racing to lure other types of enterprises, such as <a href="/industry/ev">electric vehicle</a> frame makers and battery packaging companies, in hopes of upgrading the city's industrial base rather than risk being left hollowed out. Advertisements for factories were posted on a bulletin board near the shuttered Weiyasen facility. Factory space in the city was going for RMB 0.43 (USD 0.06) per square meter per day in November, down from RMB 0.62 (USD 0.09) in 2022, according to property site 58.com.
But while some exporters are struggling to adapt to the new era, China's overall trade performance has eased concerns about an economic slowdown and made a case for staying the course.
"The rebound of export growth in November helps to mitigate the <a title="" href="https://asia.nikkei.com/economy/china-signals-investment-push-next-year-as-domestic-demand-falters" target="_blank" rel="noopener">weak domestic demand</a>," Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, wrote in a note. "It seems the economy is on track to deliver around 5% growth this year, in line with the government's target."
The momentum, however, could stoke friction with governments besides the US, from <a title="" href="https://asia.nikkei.com/spotlight/asean-money/trump-tariffs-shine-spotlight-on-chinese-targeting-southeast-asian-consumers" target="_blank" rel="noopener">Southeast Asia</a> to <a title="" href="https://asia.nikkei.com/economy/trade/eu-pushes-for-china-trade-rebalancing-as-trump-factor-looms" target="_blank" rel="noopener">Europe</a> to <a title="" href="https://asia.nikkei.com/economy/trade-war/china-urges-mexico-to-correct-erroneous-practices-over-tariff-hikes" target="_blank" rel="noopener">Latin America</a>. "Let me be very blunt. China is not fair in its contribution to the world economy. It's exporting and not importing," Samy Chaar, chief economist at Swiss private bank Lombard Odier, said at a briefing on December 11. Given weak domestic demand, he said, "China is trying access demand where it can find it. … The rest of the world is trying to shield itself from the Chinese ogre in terms of production and exports."
This article first appeared on <a href="https://asia.nikkei.com/spotlight/policy-asia/china-revs-up-global-sales-push-despite-trump-s-trade-war">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.0722vps.aieehr01.top/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

China revs up global sales push despite Trump's trade war

Consumer Economy

China

Chinese consumers are increasingly shifting to stores that offer competitive prices such as conveyor belt sushi chains as the impact of the government's stimulus spending faded in the latter half of 2025, signaling weakening domestic demand.
An office worker in Beijing said he used his government subsidy to buy a smartphone for his mother. The subsidy, worth about USD 70, lowered the price of the purchase to RMB 4,500 (USD 630). "We didn't urgently need it, but the subsidy made it cheaper, so we went ahead and bought it," he said.
But he bought nothing during the Singles' Day sales campaign, a major retail event that runs in November. "I can't just open up my wallet" when there is no prospect for a salary increase, he said, adding that there was nothing he particularly wanted to buy.
Sales during the Singles' Day campaign rose 14.2% on the year, according to a Chinese research firm, but growth slowed compared to the 26.6% increase that companies logged in 2024.
The government allocated RMB 300 billion (USD 42 billion) to the subsidy program in 2025, and from January it expanded the policy to apply to purchases of such devices as smartphones and tablets. But areas such as Shanghai and Anhui switched to a lottery system for the subsidies from summer, dampening consumer enthusiasm. Some places have already ended the payments.
The subsidy program had the effect of front-loading demand. A Morgan Stanley survey of about 2,000 Chinese consumers found that about 70% moved forward their purchases by up to six months because of the subsidies. Even with the financial boost from the program, the effect is proving short-lived.
There were only a few customers in a Beijing smartphone store in early December 2025. Smartphone makers are trying to lure their customers by taking such steps as selling new models at cheaper prices. Smartphone shipments in the July-September quarter fell 0.6% on the year, according to US-based research firm IDC.
Chinese leadership set the country's economic policy at the Central Economic Work Conference, which concluded on December 11. While moving to curb a sharp rise in the deficit, officials maintained their position on using active spending measures to boost domestic demand. While the leadership agreed on improvements on the incentive program, leaning on similar schemes risks further eating into future demand.
With consumption tepid, companies offering strong value at low prices are performing well.
On December 6, Japan's Food &amp; Life Companies (F&amp;LC) opened <a title="" href="https://asia.nikkei.com/business/food-beverage/japan-s-sushiro-opens-to-14-hour-wait-times-in-shanghai" target="_blank" rel="noopener">two locations</a> of its Sushiro conveyor belt sushi restaurant chain in Shanghai. Crowds gathered early on opening day to get seating tickets. By opening, the restaurant had handed out 697 tickets, with waiting times reaching up to 14 hours.
Sushi plates cost between RMB 10–28 (USD 1.4–3.9) . A local man, his wife and ten-year-old son together ate nearly 30 plates. "It's really good, and it's cheap," he said.
As high-end restaurants in China close one after another, cost-conscious dining options like conveyor belt sushi are gaining popularity. "I care about the value along with the taste when choosing a place to eat out," said the local man.
F&amp;LC plans to expand its Greater China store count by more than 30% in the fiscal year ending September 2026 from the 160 locations at the end of fiscal 2025. Hotpot chain Haidilao is entering the conveyor belt sushi market, recently opening a store in Hangzhou, Zhejiang.
This article first appeared on <a href="https://asia.nikkei.com/economy/china-s-consumers-hunt-for-bargains-after-subsidy-fueled-demand-fizzles">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.0722vps.aieehr01.top/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

China's consumers hunt for bargains after subsidy-fueled demand fizzles

Retail

… demand window.
<h3>36Kr: It has been nearly three years since Baozun took over. What stands out most from that journey?</h3>
KH: After acquiring such a large international brand, we had to overhaul everything, from people and products to channels and organizational systems. When other companies ask what the hardest part was, I say “everything.”
Our priorities have evolved over time. In the first phase, we focused on rebuilding core infrastructure. Last year, we aligned brand positioning and product strategy. This year, we are deepening and expanding our retail channels.
<h3>36Kr: Foreign brands have long been manufacturing in China. Is there still room to improve the supply chain?</h3>
KH: Absolutely. During the first two years, offline expansion was limited, but our e-commerce business continued to grow. For example, we developed a matrix of <a href="/company/douyin">Douyin</a> accounts to better reach target audiences. When a product gains traction online, local supply chains must respond quickly.
That requires end-to-end agility, from design to manufacturing. By synchronizing supply and demand, we have built faster and more efficient production cycles.
<h3>36Kr: Given today’s price-sensitive environment, will your reduced reliance on discounts hold?</h3>
KH: Before the acquisition, Gap often relied on deep discounts to clear inventory. We have since returned to a more rational level.
Gap remains a mass market brand. We aim to leverage scale to achieve supply chain efficiencies and pass value to consumers through quality rather than markdowns.
<h3>36Kr: Your local supply chain ratio is around 70%, correct?</h3>
KH: Yes, and that is a healthy balance. It fluctuates by about 10% depending on seasonal collections. We do not localize for its own sake. Our goal is to offer both locally developed products and selected global pieces that align with the brand’s positioning.
<h3>36Kr: After two years of localization, what are the biggest challenges in driving further growth?</h3>
KH: I would not frame them as challenges. Our direction is clear. It simply takes time for consumers to feel the change and for results to mature.
<h3>36Kr: Has your experience in China influenced Gap globally?</h3>
KH: Yes. Our fall 2025 campaign in China performed well and gave the global team confidence. Platforms such as Douyin have become case studies for Gap’s international <a href="/industry/e-commerce">e-commerce</a> strategy. The global team frequently visits China to study our operations.
We have also received interest from Gap’s other Asia partners, who want to source from our China-developed collections because they better suit regional body types and aesthetics. That creates new opportunities for Gap China’s design team.
<h3>36Kr: Beyond financial targets, what expectations does Baozun’s leadership have?</h3>
KH: They place strong emphasis on organizational capability, particularly end-to-end execution from design through supply chain, as well as long-term brand influence.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3600585711157249">article</a> was written by Li Xiaoxia for 36Kr.

Baozun takes a “local for local” approach to rewire apparel brand Gap for China

Fashion

Creative

… href="https://asia.nikkei.com/politics/international-relations/trump-says-he-ll-visit-china-in-april-and-host-xi-next-year" target="_blank" rel="noopener">US-China trade tensions</a>. "Our sales performance in the US this year has grown several times despite tariff challenges," he said.
Pudu is reportedly nearing breakeven after nearly a decade of operations, and Zhang confirmed that the company is preparing for an IPO, though he declined to provide a timeline.
"Globally, the penetration rate of our B2B robots is still probably under 5%," he said. "There's tremendous room for growth."
This article first appeared on <a href="https://asia.nikkei.com/editor-s-picks/interview/china-s-pudu-takes-robot-dogs-outdoors-to-fuel-growth">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.0722vps.aieehr01.top/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

China's Pudu takes quadruped robots outdoors to fuel growth

Robotics

Doubao’s daily active users (DAUs) have officially exceeded 100 million, reinforcing its position as a major app within <a href="/company/bytedance">ByteDance’s</a> portfolio. Multiple sources confirmed the milestone, 36Kr reported.
A ByteDance insider said Doubao’s user growth and marketing spend were the lowest among any company product that has surpassed the threshold of 100 million DAUs. Sources also said user retention has remained strong through 2025. Doubao’s image generation model Seedream and video generation model Seedance have continued to fuel creative use cases, while viral tools such as the “three-frame collage” photo feature have driven millions of downloads daily.
ByteDance was among the first Chinese tech firms to bet heavily on <a href="/industry/ai">artificial intelligence</a>. It began internal testing of Doubao in June 2023 and launched the app publicly two months later, ahead of competitors such as Kimi, which debuted in October 2023, and <a href="/company/tencent">Tencent’s</a> Yuanbao, released in May 2024. That early start helped Doubao dominate app store charts for months.
Beyond this milestone, Doubao has advanced on multiple fronts. It rolled out the Doubao smartphone to integrate hardware with AI, and expanded Douyin’s <a href="/industry/e-commerce">e-commerce</a> platform to explore AI-enabled shopping scenarios.
The app’s rapid growth reflects both technological strength and organizational coordination. Doubao’s large language model is developed by ByteDance’s Seed team, a key internal division. This year, Seed merged with ByteDance’s AI Lab and underwent an organizational upgrade under new leader Wu Yonghui. The team now focuses on foundational AI research and product deployment. To boost morale, ByteDance offered additional stock options to Seed team members and suspended quarterly performance reviews for certain long-term research projects.
With massive traffic and strong engagement metrics, Doubao’s rise is pushing rivals to accelerate their own AI investments.
Earlier this year, Tencent’s Yuanbao intensified its marketing push. According to AppGrowing data, Yuanbao’s ad spending rose steadily from February, reaching nearly RMB 6 billion (USD 840 million) by July, and briefly topped China’s free app download charts.
By year’s end, <a href="/company/alibaba">Alibaba</a> launched an aggressive campaign to promote Qwen, alongside <a href="/company/ant-group">Ant Group’s</a> AQ and LingGuang applications. The Qwen app gained particular momentum, attracting more than 30 million monthly active users within 23 days of its launch.
Meanwhile, ByteDance’s Volcano Engine will serve as the exclusive AI cloud partner for China Media Group’s 2026 Lunar New Year gala, one of the country’s most-watched events. Doubao will also provide interactive features for the broadcast. The competition for this partnership has long been fierce, with Douyin previously holding the role in 2019 and 2021.
The year 2025 is widely seen as the dawn of China’s “AI era,” marked by the breakout of <a href="/company/deepseek">DeepSeek</a>. As 2026 begins, Doubao may carry the task of bringing AI into the everyday lives of hundreds of millions.
Still, some within ByteDance cautioned that Doubao’s path to commercialization remains unclear. Supporting such a large user base entails significant inference costs, which could weigh on margins.
Even so, insiders said Doubao’s model-as-a-service business has exceeded internal expectations, delivering healthy margins through technical optimization and competitive pricing.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3609313072153862">article</a> was written by Li Xiaoxia for 36Kr.

Doubao hits 100 million DAUs as ByteDance extends its AI lead

East Asia

Artificial Intelligence

Deep Tech

… Aito M7, publicly said he intended to learn from Huawei’s management model. Soon after, Li Auto hired several former Huawei executives, including Li Wenzhi, Zou Liangjun, and Yuan Chunfeng, signaling a push toward more systematized operations.
Since 2024, however, the results have been mixed. According to 36Kr, Li Auto’s sales teams engaged in aggressive internal competition, including cross-region poaching and internal kickbacks, in an effort to meet targets. The company’s heavy emphasis on sales performance also contributed to strategic missteps in the <a href="/industry/ev">electric vehicle</a> market. By this year, many Huawei-affiliated executives had departed, with CEO Li resuming direct oversight of organizational and personnel matters. A similar pattern emerged at <a href="/company/zeekr">Zeekr</a>.
Still, it would be reductive to conclude that Huawei-trained managers are inherently ill-suited to startups. The outcome often depends on whether these executives can integrate with existing teams, whether responsibilities are clearly defined, and whether their management systems align with the company’s stage of development.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3607842072560902">article</a> was written by Huang Nan for 36Kr.

EcoFlow hires Huawei veteran Peter Tong ahead of US IPO push

Energy

… and vehicles, including welding parts, repainting cars, and reattaching doors.
Those use cases shaped the design of the XLaserLab X1 and X1 Pro.
The X1 Pro is positioned as a portable, high-power laser welder for beginners and small workshops. Weighing 19 kilograms and compatible with household power, it combines welding, including underwater welding, cutting, cleaning, and CNC (computer numerical control) modification. It supports welding thicknesses from 0.5–3.0 millimeters and materials such as stainless steel, carbon steel, and aluminum alloys. According to XLaserLab, its welding speed is five times faster than TIG (tungsten inert gas) welding. Pricing ranges from USD 3,999–4,299, including a wire feeder.
So far, the company has delivered more than 2,000 units of the X1 and X1 Pro, with a reported fulfillment rate of 90%.
As X Photonics’ first consumer-facing product, the machine emphasized functionality and ease of use.
“B2B clients already have some operational foundation and can adjust based on their needs. C-end customers are different, they have to be able to use it right out of the box,” Zhou said.
<h3>Strong products, limited experience</h3>
For an upstream laser manufacturer, moving from B2B to B2C has proven difficult. X Photonics and Zhou went through repeated rounds of market adjustment.
Before 2022, the company focused on R&amp;D and manufacturing of semiconductor lasers used in automotive manufacturing, power generation equipment, consumer electronics, and aerospace. Zhou recalled that in 2021, factories were operating at full capacity and orders routinely outpaced supply.
After 2022, price competition intensified across the laser industry. Revenue continued to rise, but profitability stalled. X Photonics began exploring new directions, including LiDAR (light detection and ranging). It developed a high-reliability 940-nanometer semiconductor laser for automotive-grade 1,550-nanometer LiDAR systems, with failure rates below 100 FIT, or failures in time. Built on mature EDFA (erbium-doped fiber amplifier) technology, the product became one of the company’s more established LiDAR offerings.
Over the past three years, X Photonics has oscillated between enterprise and consumer ambitions. The company initially stayed close to enterprise customers before revisiting the consumer market.
The concept was appealing, but execution proved difficult.
“We thought if we led in B2B, we could survive and grow. But after competition became saturated, many B2B deals depended on ecosystems,” Zhou said.
Products tied to the <a href="/company/byd">BYD</a> ecosystem, for example, are unlikely to sell into the ecosystem of <a href="/company/catl">Contemporary Amperex Technology</a> (CATL), and vice versa.
“I thought we had a USD 3 billion market, but in fact we could only target half of it. The market wasn’t large enough, and competition was so fierce that it couldn’t meet our growth needs,” Zhou said.
He reached a blunt conclusion: B2B offers limited pricing power and little brand equity, while B2C offers both. In Zhou’s view, shifting from supplying laser components to selling consumer products is a form of dimensionality reduction. The technical foundation is in place, but success in the consumer market depends as much on sales and operations as on engineering.
That gap became clear during XLaserLab’s Kickstarter campaign. Lacking overseas <a href="/industry/e-commerce">e-commerce</a> experience, the company did not build an independent store or establish an Amazon presence, missing an early wave of traffic.
“We didn’t know how to build an independent site or use Amazon, and that cost us tens of millions in lost traffic,” Zhou said.
For X Photonics and XLaserLab, the consumer market is now within reach. Yet whether the company can adapt to the speed, flexibility, and intensity of B2C competition remains an open question.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3599799092035845">article</a> was written by Leslie Zhang for 36Kr.

After reaching B2B limits, X Photonics turns to Kickstarter to launch consumer laser engravers

Hardware

Rising concerns in the US and Europe over China's record global trade surplus of more than USD 1 trillion are unlikely to prompt Beijing to rein in exporters for the foreseeable future, experts say.
Official data released this week showed China's surplus for the first 11 months of the year already <a title="" href="https://asia.nikkei.com/economy/china-s-trade-surplus-tops-record-1tn-as-exports-rebound" target="_blank" rel="noopener">hit USD 1.07 trillion</a>. This should be a "wake-up call" to China's trading partners that "the arsenal of current trade remedies and rules are not working," said Wendy Cutler, senior vice president of the Asia Society Policy Institute.
While the focus this year has been on US President Donald Trump's tariffs, under which China's US-bound shipments have fallen sharply, the European Union (EU) is shaping up to be the next battleground. French President Emmanuel Macron told domestic media that he warned President Xi Jinping during his recent visit to China that if Beijing fails to address the trade imbalance, the EU "will be forced to take measures in the coming months."
Over the past five years, China's export surge has been driven by both pandemic side effects and advancements in domestic manufacturing. Rising inflation and interest rates in other countries have boosted demand for low-priced Chinese goods, while Beijing's industrial push—including its "<a title="" href="https://0722vps.aieehr01.top/for-xi-jinping-made-in-china-2025-has-been-worth-every-penny" target="_blank" rel="noopener">Made in China 2025</a>" strategy—and vast supply chains have reinforced its manufacturing edge. Deflation within China since mid-2022 has further enhanced exporters' competitiveness.
Jin Keyu, a professor of finance at the Hong Kong University of Science and Technology, told Nikkei Asia that the surplus "is not just a trade issue." She said it is important to recognize that it is also a result of China's exceptionally high household savings rate, while investment has grown more slowly.
So while consumption-spurring measures could be one way to reduce it, "China's strategic direction going forward is focused on consolidation, integration, optimization, and efficiency. This is aimed at addressing overcapacity problems stemming from excessive competition. Domestically, that also means fewer subsidies and less emphasis on scale, which should help alleviate some of these issues," Jin said.
Yet she also called overcapacity itself "a misleading concept." China is providing developing countries abundant, affordable, high-quality renewables, and other technologies, benefitting the world, she said. "For example, there is no worldwide overcapacity in [electric vehicles]," she said, echoing arguments Beijing itself has made in downplaying worries in Europe and elsewhere about an <a title="" href="https://asia.nikkei.com/spotlight/asia-insight/china-s-underutilized-factories-fan-export-dump-fears-in-u.s.-and-europe" target="_blank" rel="noopener">influx of inexpensive Chinese EVs</a>.
While China's domestic demand remains lackluster, the trade surplus is expected to help Beijing meet its official growth target, which is "around 5%" for 2025. Many economists anticipate that officials will set a similar goal for 2026 to boost confidence.
On December 8, the Chinese government's 24-member Politburo held a meeting and signaled concern over slower growth since the middle of the year, referring to "counter-cyclical" policy adjustment, which describes efforts to stabilize the economy and had been absent from July's Politburo meeting. State news outlet Xinhua's account of the discussions also reintroduced "trade struggles," an indication that Beijing might be expecting flare-ups in trade friction.
Lu Ting, a managing director and chief China economist at Nomura, said, "We especially believe the rising trade imbalance with Europe will trigger rounds of trade tensions which have so far been underestimated by markets."
The EU is particularly anxious over China's EV exports. In 2024, China churned out 12.4 million EVs, representing more than 70% of global output, while Europe produced about 2.8 million and North America made 1.8 million, according to the International Energy Agency.
"The USD 1 trillion in trade surplus is a real concern, not just in Europe but in many other countries, that the competitiveness of Chinese products are pushing out domestic manufacturers or even hindering domestic manufacturing to get off the ground, leading to underperformance in terms of economic growth, but perhaps also job losses," said Jens Eskelund, president of the EU Chamber of Commerce in China (EUCCC).
The chamber said the EU's trade deficit with China is expected to exceed EUR 400 billion (USD 470 billion) this year.
Wu Xinbo, dean of the Institute of International Studies and director of the Center for American Studies at Fudan University, called the unprecedented surplus a "pleasant surprise" amid China's trade tensions with the US and Europe. He said the strong export momentum should continue for some time due to the "competitiveness of the exported goods."
"If the European Union takes further measures, including imposing additional tariffs, China will simply continue to negotiate, while also taking some countermeasures, such as not buying Airbus [planes]," Wu said.
"And since relations with the US have improved, we can buy [from] Boeing instead," he added, referring to the trade truce struck by Trump and Xi at the end of October.
Wu emphasized that it is unlikely for Beijing to instruct its producers to export less, as exports are driven by market forces, while it is also highly improbable that China would restrict export pricing, given its production cost advantages over Europe.
To manage tensions, Wu suggested, "I think what China can do is appropriately increase imports from Europe, if Europe has suitable products, including both goods and services, as well as increasing investment in Europe."
EUCCC's Eskelund suggested that allowing the yuan to appreciate would also help ease the tensions, while at the same time putting money back in Chinese consumers' products by making imports cheaper. "China can continue exporting an ever-increasing volume of goods to Europe," he cautioned, "but doing so risks further backlash."
This article first appeared on <a href="https://asia.nikkei.com/economy/trade-war/china-s-1tn-wake-up-call-record-surplus-threatens-to-fuel-trade-tensions">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.0722vps.aieehr01.top/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

China's wake-up call: Record surplus threatens to fuel trade tensions

… success. Monthly revenue exceeded RMB 40 million (USD 5.6 million), and the team grew from 20 to 70 members.
S-Game followed with Phantom Blade 2 and Phantom Blade 3, both developed on larger budgets. The latter topped the iOS RPG charts at launch.
But the growth also brought backlash. Phantom Blade 2 was criticized as overly commercial and “pay-to-win.” Phantom Blade 3 faced similar complaints, with its TapTap rating dropping soon after release. Liang called them “commercial games with an indie spirit,” but many fans remained unconvinced.
Public perception worsened when Liang posted a photo of a Lamborghini model on social media, prompting jokes that he had “sold out.”
<h3>The making of Phantom Blade Zero</h3>
S-Game’s redemption began with Phantom Blade Zero.
Determined to restore creative integrity, the studio sought major backing without losing control. In 2021, Tencent acquired a 25% stake in S-Game.
In an internal memo, Liang explained that Tencent approached them after learning of their large-scale PC and console plans. The deal provided funding and technical support “without interfering with creative direction.” Liang outlined a five-year roadmap for two Unreal Engine 5 titles: Phantom Blade Zero and <a href="https://www.cruelmanstudio.com/stellar-saga">Stellar Saga</a>. The latter was later shelved so the team could focus entirely on Phantom Blade Zero.
Narratively, Phantom Blade Zero continues the legacy of Rainblood. What began in 2008 as a student’s sketchbook idea evolved into a multi-platform franchise. From classrooms to mobile hits to a high-budget console production, Liang’s path mirrors that of his protagonist: scarred, but relentless.
In Rainblood: Town of Death, the hero had 64 days to live. In Phantom Blade Zero, he returns with 66. What those two extra days signify remains to be seen. But if one word defines Phantom Blade Zero, it’s “wuxia.”
After attending a hands-on event on July 27 at Beijing’s Shougang Park, 36Kr described the title as China’s next benchmark in action RPGs. Blending fast-paced combat with cinematic storytelling, it stands apart from both the deliberate pacing of Soulslike games and the frenetic style of Devil May Cry. Its goal is to deliver action that feels authentically Chinese in rhythm and spirit.
The trailer unveiled at this year’s TGA captures its “dark wuxia” tone. It opens with a masked man cradling a baby while fighting off assassins, then cuts to the protagonist awakening on a carriage bound for distant lands. Returning characters, including Leng Tu from the Rainblood saga, make brief appearances.
Combat footage showcased complex boss encounters and a variety of weapons, from polearms and hammers to stylized martial arts sequences blending traditional choreography with punk-inspired flair. The lion dance boss, leaping between pillars, drew particular praise for fusing Chinese cultural motifs with modern fantasy design.
<figure id="attachment_159070" aria-describedby="caption-attachment-159070" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-159070" src="https://console.0722vps.aieehr01.top/wp-content/uploads/2025/12/Phantom-Blade-Zero-Weapon.jpg" alt="Image of the playable protagonist in Phantom Blade Zero, wielding a distinctive mace-like polearm." width="1920" height="1080" srcset="https://console.0722vps.aieehr01.top/wp-content/uploads/2025/12/Phantom-Blade-Zero-Weapon.jpg 1920w, https://console.0722vps.aieehr01.top/wp-content/uploads/2025/12/Phantom-Blade-Zero-Weapon-720x405.jpg 720w, https://console.0722vps.aieehr01.top/wp-content/uploads/2025/12/Phantom-Blade-Zero-Weapon-1024x576.jpg 1024w, https://console.0722vps.aieehr01.top/wp-content/uploads/2025/12/Phantom-Blade-Zero-Weapon-768x432.jpg 768w, https://console.0722vps.aieehr01.top/wp-content/uploads/2025/12/Phantom-Blade-Zero-Weapon-1536x864.jpg 1536w, https://console.0722vps.aieehr01.top/wp-content/uploads/2025/12/Phantom-Blade-Zero-Weapon-480x270.jpg 480w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-159070" class="wp-caption-text">The playable protagonist in Phantom Blade Zero wields a range of weapons, including a distinctive mace-like polearm. Image source: S-Game.</figcaption></figure>
According to the game’s Steam page, Phantom Blade Zero uses advanced motion capture directed by Kenji Tanigaki, a veteran from Donnie Yen’s stunt team known for his work on Wo Long: Fallen Dynasty.
Speaking with 36Kr, Liang and his team emphasized their deep study of martial arts and kung fu cinema to ensure authenticity in every gesture and emotion.
Hands-on testers describe the gameplay as feeling like starring in a kung fu epic, balancing classic wuxia tropes with cyberpunk flair. Prosthetics, secret scrolls, and steel shape its world.
<figure id="attachment_159079" aria-describedby="caption-attachment-159079" style="width: 480px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="size-full wp-image-159079" src="https://console.0722vps.aieehr01.top/wp-content/uploads/2025/12/Phantom-Blade-Zero-Combat.webp" alt="A snippet of combat gameplay in Phantom Blade Zero, which draws heavily from wuxia traditions while incorporating elements of cyberpunk style." width="480" height="270" /><figcaption id="caption-attachment-159079" class="wp-caption-text">Combat in Phantom Blade Zero draws heavily from wuxia traditions while incorporating elements of cyberpunk style. Graphic source: S-Game.</figcaption></figure>
Like its protagonist, S-Game has come full circle: six years of indie development, seven years in mobile, and now a return to narrative-driven, single-player storytelling. The studio has experienced passion, compromise, and renewal. But unlike its characters, S-Game cannot defy mortality. It must survive as a business, and that means Phantom Blade Zero must sell.
Even so, Liang insists his ambition remains unchanged: to make a great game. For that alone, Phantom Blade Zero might just be worth the wait.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3592724488356097">article</a> was written by Beiguo Shu (alias) for 36Kr.

From Rainblood to Phantom Blade Zero: The origins and rise of S-Game

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