This study analyzes 234 policy texts on online literature issued between 2006 and 2025 and constructs a three-dimensional policy analysis framework of "policy tools – policy goals – policy participants" to conduct systematic quantitative and content analysis. The findings reveal that industrial policies for online literature in China have evolved through three stages: the nascent stage, the development stage, and the consolidation stage; the policy instruments exhibit a structural imbalance—environmental-type tools predominate while supply-type and demand-type instruments remain supplementary—with significant variation in sub-tool deployment; policy goals show a pronounced bias toward social benefits, with inadequate support for economic objectives; policy participation remains primarily governmental and enterprise-driven, with limited engagement from creators, readers, and researchers, and a collaborative governance framework has yet to emerge. Based on these findings, three optimization directions are proposed. First, rebalance the policy tool mix. On the supply side: build enterprise capacity in editorial operations, content review, and platform governance; accelerate the research and application of intelligent review, copyright registration and traceability technologies; increase financial support for high-quality content creation and publication transformation projects of online literature. On the demand side: incorporate online literature into the national reading project framework; formulate differentiated support policies for dimensions such as copyright export; encourage systematic research on the overseas dissemination effects of online literature publishing practices. On the environmental side: strengthen the implementation and feedback mechanisms for financial support policies; introduce targeted fiscal incentives for content creation; and develop clearer regulatory standards for online literature publishing. Second, rebalance policy goal priorities. Invigorate the industry value chain by prioritizing works with publication potential and providing technical and financial support across publication stages; encourage enterprises to promote cross-format adaptation of online literary works—including audiobooks and derivative products—and expand into adjacent cultural sectors. Balance industry scale expansion with cultural export objectives: promote constructive government-enterprise dialogue and build sustainable overseas dissemination systems; drawing on traditional Chinese culture and contemporary themes, develop high-quality works with both Chinese cultural identity and international resonance. Deepen the integration of online literature and the national reading project, maintaining the core orientation of "content is king." Finally, coordinate multi-stakeholder participation. Consolidate the "government-led, enterprise-coordinated" governance pattern; enterprises should fulfill their primary responsibilities and strengthen practitioner capacity building. Address the core concerns of creators regarding copyright ownership and revenue distribution; establish regular feedback mechanisms incorporating reader input into content planning; expand researchers' channels for academic participation and strengthen their advisory role. This study offers actionable pathways for optimizing the industrial policy framework for online literature and advancing its high-quality development.