Sanrio ends Hello Kitty collaboration with Japanese spy drama after Chinese criticism

Sanrio's Chinese market revenue reached 781 million yuan in the first half of 2026 (40% year-on-year growth), making the country strategically critical to the Japanese character licensing company. The termination signals how content disputes tied to historical narratives can trigger rapid market decisions in major economies; companies licensing brands across China-Japan markets now face measurable compliance costs when editorial content touches wartime history or bilateral sensitivities. Merchandise removals and formal apologies by multinational subsidiaries in response to state media criticism establish a precedent affecting future entertainment partnerships and licensing deals in the region.