Mickey Mouse and other Disney characters are popular in many countries, and China is no exception.

Now the Walt Disney Company has given permission for the Shanghai-based underwear company Three Guns to produce and sell children's underwear featuring some of the cartoon characters.

Three Guns opened its first Disney store last week in Shanghai's Xujiahui and donated the first batch of underwear to the Shanghai Children's Welfare Centre.

Disney's cartoon figures are becoming increasingly popular in China thanks to such things as DVDs, theme parks and Internet games.

"We already know Disney's great impact on Chinese children and believe this will be a win-win collaboration," said Cao Chunxiang, vice-managing director of Three Guns. He said Three Guns plans to open around 30 Disney Kids Underwear Stores and retail counters throughout China by the end of 2006.

The cooperation with Three Guns is a good example of how Disney wants to focus on and expand its business in China. Earlier this year it opened the Disneyland theme park in Hong Kong. Recently, Disney relocated the regional headquarters for Disney consumer products from Hong Kong to Shanghai.

"China has become a strategic market for the Walt Disney Company and has recently become our 10th largest clothing market globally," said Disney's Lester W. Lee, regional director, Asia Pacific Region. "So, we are committed to making China one of our company's biggest growth drivers; this success is dependent upon Disney having key local partners like Three Guns which is the leading company in China in their sub-category of underwear garments. Three Guns will help deliver the Disney brand promise to consumers of creativity, quality and trust, with a bit of "Disney magic'," said Lee.

(China Daily December 21, 2005)