China’s “Ne Zha 2” has dominated the first quarter of 2025 at the global box office, raking in over $2 billion and becoming the highest-grossing animated film and sixth-highest-grossing film ever at press time. The film has certainly overperformed expectations, but there were plenty of clues that a box office boom for Chinese animation was in the cards.
Before “Ne Zha,” “Boonie Bears” was the country’s big animated IP. In 2024, the franchise crossed the $1 billion mark with its 10th feature, “Boonie Bears: Time Twist.” In 2023, Light Chaser Animation’s historical epic “Chang’An” proved a smash hit, grossing $250 million at the box office, outperforming films from the biggest U.S. and Japanese studios that year.
The Rise of Chinese Animation
Chinese animation, often referred to as donghua, has a long and storied history but has truly come into its own in the past decade. With the introduction and development of advanced and inexpensive animation technology and a growing pool of talented animators, Chinese studios have been able to produce high-quality animated films that rival those of stronger traditional markets. This shift was driven by a combination of factors, including increased investment in the entertainment sector, government support and a burgeoning domestic market, as demonstrated by the popularity of Chinese animation and imported titles from Japan and the U.S.
One of the key milestones in the rise of Chinese animation was the 2019 release of “Ne Zha.” Directed by Yu Yang, the film retells a classic Chinese mythological tale and became a massive hit domestically. It grossed over $700 million worldwide, making it the highest-grossing animated film in China at the time. This success paved the way for more ambitious projects and set the stage for releasing its highly anticipated sequel, “Ne Zha 2.”
Ne Zha 2: A Box Office Phenomenon
Released on Jan. 29, “Ne Zha 2” has taken the global box office by storm. The film, helmed by returning director Yu, continues the story of Ne Zha, a rebellious and powerful young deity. The sequel has not only lived up to the expectations set by its predecessor but has also surpassed them in almost every way.
“Ne Zha 2” not only has grossed over $2 billion worldwide, making it the first Chinese film to achieve this milestone, it has also maintained a record-breaking run in Imax, with a cumulative total of over $150 million worldwide. Those totals pushed “Ne Zha 2” past Imax mega-hits such as “Interstellar” ($145 million), “Avengers: Infinity War” ($145.8 million) and “Dune 2” ($146.5 million). The film’s box office totals have room for further growth, with upcoming releases planned in Europe and Asia.
Cultural Impact and Global Influence
The success of “Ne Zha 2” is not just a financial triumph but also a significant cultural milestone. The film’s storyline, which blends traditional Chinese mythology with modern themes of individualism and self-determination, has resonated with audiences worldwide. This fusion of old and new has allowed “Ne Zha 2” to transcend cultural boundaries and appeal to a diverse global audience.
Chinese animation often relies on the country’s rich cultural history for inspiration. Recent examples include last year’s “Into the Mortal World,” which used the traditional Chinese astronomical concept of the 28 mansion spirits as a narrative device for its romantic leads; 2023’s historical epic “Chang’An,” based on the interweaving life stories of the legendary poets Gao Shi and Li Bai; 2023’s “Warrior King,” adapted from the story of King Gesar; and, more controversially, the “Qianqiu Shisong” series of animated shorts produced by Chinese state broadcaster China Media Group using artificial intelligence to re-create some of the country’s most iconic stories.
Looking Forward
“Ne Zha 2’s” unprecedented success has set a new benchmark for Chinese animation and has surely opened doors for future projects. It has demonstrated that Chinese animated films can compete with Hollywood productions and achieve global recognition. This success will likely inspire other Chinese studios to invest in high-quality animation projects and explore new storytelling possibilities. It has already inspired international distributors to take a second look at the country’s animation exports.
The film’s global reach has also highlighted the potential of Chinese animation to serve as a cultural bridge, fostering greater understanding and appreciation of the country’s culture worldwide. As more Chinese animated films gain international acclaim, they will have a greater impact on the global animation landscape and contribute to the diversification of the industry. It’s not hard to imagine future artists emulating Chinese styles and stories like many Western studios now draw inspiration from Japanese anime.
There is little doubt that China stands ready to take its place as a global animation leader that will compete in both creative and commercial terms with any other territory.
