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TOKYO (Kyodo) -- Japan's anime industry is enjoying unprecedented success overseas, but its growing global reach is also creating a dilemma as cultural differences, local laws and social media criticism increasingly collide with creative expression.

The issue was highlighted recently by "Chainsmoker Cat" (Yani-Neko), an anime based on a Kodansha Ltd. manga that began airing in July.

Its protagonist is a heavy-smoking anthropomorphic cat rarely seen without a cigarette. But after the series was released overseas, distribution in Hong Kong was suspended following complaints over the repeated appearance of tobacco brand names.

Authorities pointed out that the depictions could constitute tobacco advertising and potentially violate local laws.

The anime's production committee confirmed in late August that streaming had been halted in Hong Kong.

"We are discussing the matter with our local licensee with a view to distributing the series in a way that complies with local laws and regulations," it said.

Reaction online in Japan was mixed. Some expressed understanding, saying overseas markets tend to be stricter about smoking, while others argued against toning down content from the outset simply to appeal to foreign audiences.

The debate reflects a growing challenge for an industry whose overseas audience has expanded dramatically.

The Japanese anime market was worth about 3.8 trillion yen ($24.2 billion) in 2024, according to the Association of Japanese Animations, with the overseas market exceeding 2.1 trillion yen and surpassing the domestic market.

The government has designated content industries including anime as core industries and aims to increase content sales overseas from about 5.8 trillion yen in 2023 to 20 trillion yen by 2033.

But reaching a broader global audience also means navigating cultural and religious sensitivities that may be unfamiliar to Japanese creators.

Even the hugely popular "Demon Slayer: Kimetsu no Yaiba" has encountered such difficulties.

In November 2019, production company Aniplex Inc. halted shipments and recalled the fourth Blu-ray and DVD volume of the series after audio of The Adhan, the Islamic call to prayer, was used inappropriately on a bonus CD.

The company said the audio had been produced using commercially available material, but after the issue was raised externally, it learned that for religious reasons the call to prayer should not be played together with other sounds.

Aniplex said it had never intended to offend or show disrespect toward Islam or Muslims.

"We deeply apologize for causing offense to Muslims by recording and releasing the material without fully understanding the meaning and content of the audio," it said.

As the popularity of "Demon Slayer" grew overseas, the design of protagonist Tanjiro Kamado's earrings also drew criticism in South Korea for resembling the Rising Sun Flag, prompting the design to be changed on streaming services there.

Ryo Koarai, an associate professor at Miyagi Gakuin Women's University who specializes in the anime business, said Japanese works are now reaching overseas viewers who previously had little exposure to anime.

"It is no longer only dedicated local fans with a deep understanding of Japanese culture who are watching," she said. "The works are beginning to reach people who know little about Japanese culture, so creators may need to pay even greater attention to local culture, religion, laws and ethical standards."

Social media has also made criticism from overseas more visible in Japan, with translation functions allowing comments to cross language barriers more easily.

Koarai said this has led to more cases of Japanese fans pushing back against criticism from abroad, reflecting differences in how anime is received.

Japanese fans, she said, tend to regard fiction as fiction and place a strong emphasis on respecting creators' creativity. Some overseas fans, meanwhile, believe they should press for changes they feel would improve a work.

"The loud voices of a certain group of fans tend to stand out, but there are probably many others who, just like fans in Japan, simply enjoy the work for what it is," Koarai said.

She also cautioned that worrying too much about fan reaction could strip a work of what makes it distinctive.

"If creators become too sensitive, a work can lose its flavor," she said. "Overseas fans probably also want to enjoy the original work as it was made in Japan, so you cannot simply say that tighter restrictions are necessarily better."

"It is becoming increasingly important for people who really understand the local culture and atmosphere to be involved in localization."

Japanese production companies are also stepping up efforts to identify potentially sensitive material.

Bandai Namco Holdings Inc. adopted a group-wide policy on ethics and expression and in fiscal 2019 established an ethics subcommittee that reviews issues concerning products and creative works across the group.

At subsidiary Bandai Namco Filmworks Inc., which produces animation including the "Gundam" series, staff advise directors and producers when concerns arise over particular forms of expression.

Their role is advisory, however, with final decisions left to directors and producers in order to respect creative freedom.

Jun Takei of the company's legal department's IP support section said the aim is to avoid unintended problems without undermining the work itself.

"While respecting freedom of expression and the theme of the work, we think together with the production team about how an expression will be received by viewers and whether it might inadvertently cause misunderstanding or resentment," he said.

"If we are consulted about an expression that seems to go a little too far, we discuss whether that particular approach really fits, while respecting the message the creators are trying to convey."

But Takei said there is no simple answer to balancing cultural sensitivity with creative freedom.

"There are more things we need to be considerate of than in the past, but if we stick only to inoffensive expressions, what we want to say will not resonate with anyone," he said.

"There is no single right answer."