Joy has turned to Sadness for Disney and Pixar alike 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’s just become the highest-grossing animated film of all time.
The 2019 original grossed a respectable $726 million worldwide, making it the 31st most successful animation ever made. 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 though. 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 sign of slowing down, that means “Ne Zha 2” is on track to gross $2 billion in one single market, making it the first film to ever do so in box office history. 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, not to mention the country’s highest-grossing IMAX release, too. Beyond its native homeland, “Ne Zha 2’s” record-breaking run has now propelled it into the global top 10 films ever as well. As I write this, Jiaozi’s sequel sits in eighth place above “Jurassic World,” which means it’s on the verge of swinging past “Spider-Man: No Way Home” with $1.95 billion and probably “Avengers: Infinity War,” too, currently in sixth place with $2.05 billion. Try snapping back from that.
Whether you’re dumbfounded by the surprise success of “Ne Zha 2” or you’re just confused because you hadn’t even heard of the film until now, there’s no denying how impressive that all 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 as well as a 16th-century novel named “The Investiture of the Gods,” Ne Zha is a not-so-cute hero who uses his magic gifts to defy heavenly authority and forge his own fate. The sequel begins with Ne Zha competing in mystic 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 bought a ticket (or multiple tickets) already. And there’s a strong chance you might not be, 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 a five-year period by 138 animation companies with more than 4,000 crew members. Compared to the original, the total number of shots used in the sequel increased from 1,800 to 2,400, marking a huge technological leap forward. One battle scene near the end reportedly includes 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 note just what a huge 180-degree turn this is because it wasn’t so long ago that Hollywood movies dominated Chinese multiplexes with franchise fare. 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 output at the local box office. As political tensions between the two nations shift and grow, there’s more incentive than ever to produce and consume Chinese productions in China, especially now they’re more sophisticated than ever before. The unprecedented success of “Ne Zha 2” especially has been hailed by Chinese state media as a turning point for the country’s growing “cultural confidence,” and even state officials are celebrating the sequel via official channels.
With the film’s initial success, partly due to the holiday season and love for the original, national pride has continued to propel “Ne Zha 2” with a near-divine reach. Fans have been calling on each other across Chinese social media to watch the film multiple times in cinemas via various hashtags. A wall mural painted in Shenzhen that features characters from the sequel quickly went viral, as did an ice sculpture in Changchun. Various companies unrelated to cinema are even in on the act, rallying behind “Ne Zha 2” in a participatory form of nationalism.
As Financial Times reported, snacks maker Weilong Food recently paused operations to take 900 of its staff 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 making a visible effort to support “Ne Zha” include Chinese electric vehicle maker Zeekr, who offered cinema vouchers to their employees, while Chinese smartphone maker Xiaomi organized a group viewing for theirs.

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 for China’s highest-grossing movie before this demonic kid took on said battle and won the war. That particular epic was actually commissioned by the Chinese Communist Party’s propaganda department, focusing on a victory over U.S. forces in the Korean War.
“Ne Zha 2” isn’t as outwardly nationalist, as it actually breaks from tradition in some respects, reimagining the titular character from Chinese mythology as someone more rebellious and cheeky rather than purely divine. But that’s arguably another reason for the film’s success as Ne Zha’s defiance speaks to younger viewers who yearn more for self-expression. Still, “Ne Zha 2” is undoubtedly rooted in Chinese philosophy, drawing ideas from Buddhism, Confucianism, Taoism, Mohism, and more while also utilizing Chinese cultural aesthetics such as ink painting and bronze artifacts that feel uniquely Chinese in a modernized way. Tourists are even flocking to the city of Tianjin because of how authentic Tianjin dialect, music, and local influences have been woven into the story.
Yet that’s not to say the film isn’t nationalist in bolder ways, too. If you know where to look, there are plenty of digs at imperialism, and the United States especially, found in symbols that look like the U.S. dollar sign or green card, for example. Whether that’s true or not, there’s certainly an anti-U.S. streak to the way many Chinese moviegoers have been boycotting “Captain America: Brave New World” to further support “Ne Zha 2.”
“I don’t care if ‘Ne Zha 2’ can survive overseas, but ‘Captain America 4’ must die in China,” or words to that effect have been all over Chinese social media in recent weeks. Theaters are reportedly reducing China screenings of Marvel’s latest in response, which means Cap’s gonna need a bigger shield to deflect all the gloating, especially after “Brave New World” suffered a not-so-marvelous 86.8% drop in its second three-day weekend there.
This resentment fueled by national pride also extends to critics of “Ne Zha 2,” as reported by the BBC. Comments saying “People like that are either clout-chasing, or are being paid” aren’t hard to find on Chinese social media, and if you haven’t watched “Ne Zha 2” at all, you risk being seen as unpatriotic. That’s how much the film’s success has become interwoven with China as a nation. To criticize one is to criticize the other, which reflects the political significance this cultural phenomenon has rapidly taken on in just a few short weeks.

Still, this is all good 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.” He’s not wrong, either. This financial and cultural success will embolden Chinese investors and creatives alike to capitalize on the potential unlocked by “Ne Zha 2.”
This couldn’t have come at a better time after 2024 saw around a 25% drop for the industry compared to the year before, although that, combined with “Brave New World’s” dire takings, doesn’t bode so well for Hollywood’s future in China. “Ne Zha 2” has proven there’s more desire than ever for local fare over American imports. At best, the return of bigger audiences to cinemas in China could spill over a bit and help international studio movies in the short term. Still, it’s Hollywood who may have to change now, if anything, as producers will need to consider more collaborations with their Chinese counterparts if they hope for long-term success there in one of the world’s largest, most lucrative markets.
The success of “Ne Zha 2” overseas isn’t comparable to local takings, of course, but upon its U.S. release on February 14, the film earned $7.2 million, setting a record for the highest opening weekend any Chinese-language film has enjoyed in the past 20 years. Further proof that even a film as intrinsically Chinese as this can perform well abroad, further shifting the balance of power between these two filmmaking giants. In years to come, other nations may also look to the example set by “Ne Zha 2” and consider investing more in local fare over Hollywood products. But even if this is a fluke, even if other non-English exports fail to match this success in the U.S. any time soon, it’s not like anyone is going to forget “Ne Zha 2” — the first non-Hollywood movie to join the billion-dollar club.
Now that its run in China has been extended through March, not to mention the film’s debut in various other territories over the coming weeks, “Ne Zha 2” could theoretically go on to join the top five highest-grossing movies in box office history. That’s assuming it eventually pushes its way past “Star Wars: Episode VII — The Force Awakens” after “Spider-Man: No Way Home” followed by “Avengers: Infinity War.” And if it doesn’t? Borrowing a trick from these films, “Ne Zha 2” ends with a mid-credits scene that sets up a new adventure, one which could even outgross this one and bring more joy to the industry. Or Sadness, if you’re Disney or Pixar.