Recent statistics released by San Francisco-based analyst firm App Annie show China's iOS revenue more than doubled in the first quarter of 2016 compared to the same period last year.
According to the figures, entertainment and music app revenue are on the rise in the US and China, with major apps adding subscription revenue models.
App Annie said the growth was driven "almost entirely by games".
"Typically being a leading indicator in the market, games are often a strong signal of trends to come. In this case, China passed Japan in both games and overall iOS revenue in the same quarter due to both countries' high propensity for gaming," said App Annie.
By surpassing Japan, China narrowed in on the US who is currently ranked first in iOS game revenue.
The company also predicts that if the revenue continues to grow in China, it will surpass the US in the coming quarters.