The animation outsourcing industry is an important part of the commercial animation industry chain. The production process for the vast majority of commercial animations generally involves preliminary production in the United States or other headquarters countries, followed by packaging and sending to places with lower labor costs such as Asia for processing and production, and finally returning to the headquarters in the United States or other countries for post-production.
The embryonic form of China’s animation outsourcing industry emerged in 1979, when the Shanghai Meiyin Studio provided line drawing services for Japanese animations, which can be considered as outsourcing business. China’s animation outsourcing industry began in the mid-1980s. In 1985, the Jade Animation Design and Production (Shenzhen) Company was established with investment from Hong Kong’s Television Broadcasts Limited (TVB). Since then, the animation outsourcing industry has become the main commercial animation industry chain in China.
By the end of the 20th century, China’s animation outsourcing industry had reached its peak. China replaced South Korea and Taiwan to become the world’s most important animation outsourcing base, with over 70% of Japanese animations (including TV series, movies, etc.) and a large number of European and American animations being processed in China.
Since 2004, influenced by various factors at home and abroad, the growth rate of animation outsourcing has slowed down, entering a period of transformation and adjustment. Many animation companies choose cheaper regions for animation outsourcing, such as Mongolia and the Philippines. However, China still remains the world’s largest animation processing base. According to industry estimates, currently, there are 600-800 animation companies in China undertaking outsourcing business, with an annual output value of several hundred billion yuan.

The impact of such a situation on the Chinese animation industry has both advantages and disadvantages. On the one hand, it provides employment opportunities for many people, promotes the development of the Chinese animation industry, and nurtures many Chinese animators. On the other hand, the Chinese animation industry is greatly influenced by the styles of countries such as Japan and the United States, lacking exploration of its own characteristics. China’s animation industry does not have a mature industrial chain, and new attempts entail significant risks. Therefore, most people are not willing to try and invest in the animation industry, leading to a vicious cycle.

Reference：
Production and political economy in the animation industry: Why insourcing and outsourcing occur
Chinese Animation Outsourcing Evolution: The World’s Most Important Animation Processing Base
The outsourcing of “creative” work and the limits of capability: The case of the Philippines’ animation industry
Animation industry in China: Managed creativity or state discourse?