Ne Zha 2 Becomes China’s Highest-Grossing Film, Surpassing $1 Billion in 10 Days

The highly anticipated animated sequel Ne Zha 2 has set a new benchmark in China’s box office history, grossing over $1 billion (7.7 billion yuan) within its first 10 days of release. The film, which debuted during the Lunar New Year celebrations on January 29, has surpassed The Battle at Lake Changjin to become China’s highest-grossing film ever. It has also pushed the original 2019 Ne Zha into fifth place on the country’s all-time box office rankings.

China’s Box Office Rebound

The Chinese film industry, largely dominated by domestic productions, has been experiencing a strong resurgence. Ne Zha 2’s success signals a recovery in cinema revenue after a 23% decline in 2024. The film’s visually stunning animation and engaging storytelling have fueled its popularity, with word of mouth and social media buzz driving ticket sales.

A Boost for Domestic Consumption

The film’s massive success has not only elevated China's animation industry but has also boosted retail and entertainment spending, aligning with the government's efforts to stimulate domestic consumption. Since most cinemas are located within malls, a box office hit like Ne Zha 2 encourages increased foot traffic, benefiting local businesses.

Market Impact and Investor Confidence

Shares of Beijing Enlight Media Co., the film’s distributor, soared by over 40% as investors responded to the record-breaking performance. Additionally, pre-orders for an official Ne Zha 2 art book have skyrocketed, with merchandise sales expected to contribute further to the film’s success. On social media platform Weibo, posts celebrating the movie's triumph have dominated trending topics.

China’s Film Industry vs. Hollywood Imports

While Hollywood blockbusters such as Avengers and Fast & Furious have seen occasional success in China, the local industry continues to dominate. Beijing’s restrictions on foreign films—which often require content modifications or delayed releases—make it challenging for international studios to compete.

Despite this, China approved the release of several foreign titles in 2024, including:

• Deadpool & Wolverine (Disney) – despite its violent and irreverent content.

• Godzilla x Kong: The New Empire – a top 10 hit.

• Hayao Miyazaki’s The Boy and the Heron – a major success.

• Alien: Romulus – just outside the top rankings.

Ne Zha 2’s Global Potential

With its record-breaking success, Ne Zha 2 is now on track to become the highest-grossing film in a single market worldwide, solidifying China’s growing dominance in the global film industry.