This chapter analyzes the economic structures and intellectual property regimes that shape the contemporary Chinese animation industry. It situates animation within the broader creative industries, emphasizing its value as both cultural product and market commodity. The discussion maps the animation market across production, derivatives, and merchandising, underlining how profitability often depends less on the films themselves than on toys, licensing, and related sectors. Different modes of production are explored, including state-sponsored studios, private enterprises, and transnational co-productions, which connect Chinese animation to global labor flows. The chapter also highlights the significance of branding, outsourcing, and the clustering of production in industrial parks and creative zones. A central theme is the tension between rapid industrial growth and weak protection of intellectual property. Piracy, counterfeiting, and informal media economies remain structural obstacles, undermining domestic producers even as China dominates the global manufacture of licensed goods. Legal reforms, including copyright law revisions and recent regulations on AI-generated content, illustrate the evolving complexity of intellectual property in the digital era. Ultimately, the chapter demonstrates that the consolidation of intellectual property rights is essential not only for economic sustainability but also for securing cultural legitimacy and global competitiveness in the animation sector.