Hollywood’s Animation Crown Toppled With China’s ‘Ne Zha 2’
Published On: February 20th, 2025
In a seismic shift for the global film industry, China’s animated blockbuster Ne Zha 2 has dethroned Pixar’s Inside Out 2 as the highest-grossing animated film of all time. With a staggering $1.7 billion in global box office revenue, Ne Zha 2 has not only shattered records but also signaled a new era in which China’s entertainment industry rivals Hollywood’s dominance. This achievement marks the first time a non-American, non-English-language animated film has claimed the top spot, underscoring the growing influence of Chinese cinema on the world stage.
The rise of Ne Zha 2
Released on January 29, 2025, to coincide with the Lunar New Year, Ne Zha 2 is the sequel to the 2019 hit Ne Zha, which grossed $742 million worldwide. The film, directed by Yang Yu (known as Jiaozi), is based on the 16th-century Chinese novel The Investiture of the Gods. It follows the titular character, a rebellious deity-like figure, as he battles destiny and powerful enemies to protect his town. The film’s blend of traditional Chinese mythology, cutting-edge animation, and universal themes of identity and resilience has resonated deeply with audiences.
Ne Zha 2 achieved unprecedented success in China, where it became the highest-grossing film of all time, surpassing even Avengers: Endgame. Remarkably, over 99% of its box office revenue came from mainland China, a feat unmatched by any other film in history. This contrasts sharply with Inside Out 2, which relied on a global distribution strategy to achieve its $1.699 billion haul.
Why Ne Zha 2 succeeded where Hollywood struggles
The remarkable success of Ne Zha 2 underscores several pivotal factors that have propelled China’s film industry to unprecedented heights. Deeply rooted in Chinese mythology, the film offers a narrative that resonates profoundly with domestic audiences, instilling a sense of cultural pride and nostalgia in a population four times the size of the US. This cultural specificity, intertwined with universal themes such as family bonds and defying destiny, has captivated viewers both within China and internationally.
The film also showcases China’s advancements in animation, boasting over 2,000 special effects shots and 10,000 special effects elements with a visual sophistication that rivals Hollywood productions. The integration of cutting-edge techniques, including GPU rendering and artificial intelligence, has elevated the animation quality, seamlessly blending traditional Chinese art styles with contemporary aesthetics.
Strategic release timing further amplified the film’s success. Premiering during the Lunar New Year holiday—a peak moviegoing period in China—Ne Zha 2 attracted massive family audiences, leading to record-breaking ticket sales. This well-planned release, combined with positive word-of-mouth, propelled the film to historic box office achievements.
Moreover, substantial government support has been instrumental in nurturing China’s domestic film industry. Initiatives aimed at fostering homegrown talent and storytelling have borne fruit, as evidenced by the triumph of not only Ne Zha 2 but also Jiang Ziya and White Snake. These successes reflect the maturation of China’s animation sector, positioning it as a formidable contender on the global cinematic stage.
The broader implications for Hollywood
The triumph of Ne Zha 2 underscores the shifting dynamics of the global film industry. For decades, Hollywood has dominated the box office, relying on international markets to boost revenues while dictating tastes and trends. However, as China’s domestic market grows, its films are increasingly achieving global success without heavy reliance on Western audiences. This trend challenges Hollywood’s traditional strategies, such as adding China-specific scenes or censoring content to appeal to Chinese censors.
On the whole, Ne Zha 2’s success highlights the limits of Hollywood’s influence in China. While films like Inside Out 2 perform well globally, they often struggle to resonate with Chinese audiences. In contrast, Chinese films like Ne Zha 2 are tailored to local tastes, leveraging cultural familiarity and emotional depth to captivate viewers.
A new era for global animation
The rise of Ne Zha 2 signals a broader shift in the animation industry. For years, Disney, Pixar, and DreamWorks set the standard for animated storytelling. However, Ne Zha 2 demonstrates that compelling narratives and cutting-edge animation can emerge from outside the traditional Hollywood bubble. This success paves the way for more international collaborations and cross-cultural storytelling, offering global audiences fresh perspectives rooted in diverse mythologies and traditions.
As streaming platforms like Netflix and Amazon Prime invest in foreign animation, Chinese films are poised to reach even broader audiences. Ne Zha 2’s record-breaking performance is not just a victory for Chinese cinema but a redefining moment for global animation, proving that the art form is no longer dominated by Western studios. As Hollywood grapples with this new reality, the success of Ne Zha 2 serves as a reminder that the future of animation—and cinema as a whole—will be shaped by diverse voices and stories from around the world. The era of Hollywood’s unchallenged dominance may be coming to an end, and the global film industry is all the richer for it.