In China, you risk being seen as unpatriotic if you haven’t seen the animated sequel that’s on track to gross more than $2 billion in a single market.

Joy has turned to sadness for Disney and Pixar now that Frozen 2, The Lion King, and Inside Out 2 have each been surpassed at the global box office—one after the other—by Ne Zha 2, a Chinese sequel that has just become the highest-grossing animated film of all time.
The 2019 original earned a respectable $726 million worldwide, making it the 31st highest-grossing animated film ever. However, director Yang Yu (also known as Jiaozi) has easily doubled that with his follow-up, released in China over the Lunar New Year. That’s not all. After crossing the record-breaking $1 billion milestone in less than two weeks, Ne Zha 2 is already approaching $1.9 billion in China alone. With no signs of slowing down, it’s on track to become the first film in history to gross $2 billion in a single market. Not bad for a “dying” industry, right?
With that in mind, it should come as no surprise that Ne Zha 2 is now the most successful film ever produced in China, as well as the country’s highest-grossing IMAX release. Beyond its native homeland, Ne Zha 2‘s record-breaking run has also propelled it into the global top 10 highest-grossing films of all time. As I write this, Jiaozi’s sequel sits in eighth place, surpassing Jurassic World. That means it’s on the verge of overtaking Spider-Man: No Way Home, which has earned $1.95 billion, and potentially Avengers: Infinity War, currently in sixth place with $2.05 billion. Try snapping back from that.
Whether you’re dumbfounded by the unexpected success of Ne Zha 2 or simply surprised because you hadn’t even heard of the film until now, there’s no denying how impressive its achievement is. But who—or what—is Ne Zha? How did this cheeky, demonic child come so close to toppling Earth’s Mightiest Heroes? And what does the film’s unprecedented success mean for global cinema moving forward?
Loosely based on Chinese mythology and the 16th-century novel The Investiture of the Gods, Ne Zha is an unconventional hero who uses his magical gifts to defy heavenly authority and forge his fate. The sequel begins with Ne Zha competing in mystical trials while forced to share his body with a Dragon Prince named Aobing—but that barely scratches the surface if you’re not among the millions who have already bought a ticket (or multiple tickets). And there’s a strong chance you’re not, as more than 99% of the film’s earnings to date have come from mainland China.

The movie itself was made entirely in China over five years by 138 animation companies and more than 4,000 crew members. Compared to the original, the total number of shots in the sequel increased from 1,800 to 2,400, marking a significant technological leap forward. One battle scene near the end reportedly features up to 200 million characters at once. Yet, as the film’s director told state broadcaster CCTV (translated via CNN), everything was produced within China after international collaborations fell short of initial expectations. “Sure, they might be a top-tier studio, but they could be using third-rate staff on our project,” said Jiaozi. “So, after outsourcing, many of the shots didn’t turn out as we wanted, and we ended up bringing them back.”
It’s important to recognize what a dramatic shift this represents. Not long ago, Hollywood movies dominated Chinese multiplexes with blockbuster franchises. But with the success of Ne Zha 2 and other recent hits like The Wandering Earth series, homegrown productions are now rivaling—and even surpassing—American films at the local box office. As political tensions between the two nations evolve, there is growing incentive to produce and consume Chinese films domestically, especially as they become more technologically sophisticated. The unprecedented success of Ne Zha 2, in particular, has been hailed by Chinese state media as a turning point for the country’s growing “cultural confidence,” with even state officials celebrating the achievement.
The film’s initial success, partly fueled by the holiday season and nostalgia for the original, has been further propelled by national pride. Fans across Chinese social media have urged each other to watch the film multiple times in theaters using various hashtags. A wall mural in Shenzhen featuring characters from the sequel quickly went viral, as did an ice sculpture in Changchun. Even companies unrelated to cinema have rallied behind Ne Zha 2 in a show of participatory nationalism.
As the Financial Times reported, snack maker Weilong Food recently paused operations to take 900 employees to see the film at a local cinema. Videos posted on the Chinese platform Douyin showed buses leaving the factory with a banner reading, “Global box office number one; Go go go!” Other domestic brands have also shown their support—Chinese electric vehicle maker Zeekr offered cinema vouchers to employees, while smartphone giant Xiaomi organized a group viewing for its staff.

Rising nationalist sentiment is a key factor in the success of Ne Zha 2, just as it was for 2021’s The Battle at Lake Changjin, which previously held the record as China’s highest-grossing film—until this demonic kid took on that battle and won the war. That epic was actually commissioned by the Chinese Communist Party’s propaganda department and focused on a victory over U.S. forces in the Korean War.
Ne Zha 2 isn’t overtly nationalist; in fact, it breaks from tradition in some ways, reimagining the titular character from Chinese mythology as more rebellious and cheeky rather than purely divine. But that may be another reason for the film’s success—Ne Zha’s defiance resonates with younger viewers who crave self-expression. Still, Ne Zha 2 remains deeply rooted in Chinese philosophy, drawing from Buddhism, Confucianism, Taoism, Mohism, and more, while incorporating cultural aesthetics such as ink painting and bronze artifacts. The film modernizes these elements while keeping them distinctly Chinese. Its authenticity has even turned Tianjin into a tourist hotspot, as the film prominently features the city’s dialect, music, and local influences.
That said, the film does contain nationalistic undertones. Subtle references to imperialism—particularly toward the United States—can be found if you know where to look, with symbols resembling the U.S. dollar sign or green card appearing in the film. Whether intentional or not, there is an unmistakable anti-U.S. sentiment among Chinese moviegoers, many of whom have been boycotting Captain America: Brave New World in favor of supporting Ne Zha 2.
“I don’t care if Ne Zha 2 succeeds overseas, but Captain America 4 must fail in China,” or similar sentiments, have flooded Chinese social media in recent weeks. Theaters have reportedly reduced screenings of Marvel’s latest installment in response. With Brave New World suffering a steep 86.8% drop in its second three-day weekend in China, Cap might need a bigger shield to deflect the backlash.
This surge of national pride has also fueled hostility toward critics of Ne Zha 2, as reported by the BBC. Comments like “People like that are either clout-chasing or being paid” are common on Chinese social media. Those who haven’t watched the film at all risk being seen as unpatriotic. That’s how deeply Ne Zha 2 has become intertwined with Chinese national identity. To criticize the film is to criticize the country itself, a reflection of how quickly this cultural phenomenon has taken on political significance.

Still, this is great news for China and the Chinese film industry, especially. During an event promoting movie-themed tourism at the China National Film Museum in Beijing, Wang Shiyong, founder and CEO of Wuhan-based 2:10 Animation, proudly stated, “The film’s outstanding box office performance will attract more investment and talent to the animation industry, injecting strong vitality into its development.” And he’s not wrong. This financial and cultural success will encourage Chinese investors and creatives alike to capitalize on the momentum sparked by Ne Zha 2.
This success couldn’t have come at a better time. In 2024, the Chinese film industry saw a roughly 25% decline compared to the previous year. While Ne Zha 2 has revitalized the domestic market, the same cannot be said for Hollywood, as evidenced by the poor performance of Brave New World in China. The film has made it clear that local audiences are more eager than ever for homegrown productions over American imports. At best, the resurgence of bigger audiences in Chinese cinemas could offer a temporary boost to international studio films. However, if anything, it’s Hollywood that may need to adapt. Producers seeking long-term success in one of the world’s largest and most lucrative markets might have to pursue more collaborations with Chinese studios.
Of course, Ne Zha 2’s overseas earnings don’t compare to its domestic success. However, upon its U.S. release on February 14, the film grossed $7.2 million—setting a record for the highest opening weekend for a Chinese-language film in the past 20 years. This serves as further proof that even a film as intrinsically Chinese as Ne Zha 2 can perform well abroad, subtly shifting the balance of power between these two filmmaking giants. In the years to come, other nations may look to its example and consider investing more in local productions over Hollywood imports. But even if this turns out to be an anomaly, and other non-English films struggle to match this success in the U.S., Ne Zha 2 has already cemented its place in history—as the first non-Hollywood film to join the billion-dollar club.
Now that its theatrical run in China has been extended through March—alongside its debut in various other territories in the coming weeks—Ne Zha 2 could potentially break into the top five highest-grossing films of all time. That’s assuming it surpasses Star Wars: Episode VII – The Force Awakens, followed by Spider-Man: No Way Home and Avengers: Infinity War. And if it doesn’t? Borrowing a trick from those films, Ne Zha 2 ends with a mid-credits scene teasing a new adventure—one that could even surpass its predecessor and bring further success to the industry. Or sadness—if you’re Disney or Pixar.
- IndieWire first published the article.
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Voices & Bridges publishes opinions like this from the community to encourage constructive discussion and debate on important issues. Views represented in the articles are the author’s and do not necessarily reflect the views of the V&B.