The Chinese animation industry hit a significant milestone with the release of the animated film “Ne Zha 2”, which was launched in late January during the local Spring Festival holiday period. This success comes as no surprise to those who have been observing the steady progress of the domestic animation industry, especially since the easing of Covid-19 restrictions in 2023.
One such success story is “Chang An”, a popular animated film that offers a fresh take on the life of renowned Chinese poet Li Bai. This film, which was the only animated movie among China’s top 10 films for the year, grossed about $250 million, according to Maoyan’s box office data.
The creators of “Chang An”, Light Chaser Animation, operate from an old white building on the outskirts of Beijing. During a recent visit, a number of animators were observed working on various elements of this summer’s movie, including lighting effects and design details. The studio’s president, Yu Zhou, revealed plans to hire at least 100 more people within the next year to keep up with the studio’s new production plan of releasing two movies annually starting from 2026.
The studio has a three-year production plan for all its concurrent movie projects. The team contemplates the future and whether their films will attract an audience of 20 to 30 million people once they are released. Light Chaser Animation’s next film, “Curious Tales of a Temple”, reimagines Chinese ghost stories and is slated for release this summer. The studio is in discussions with Hollywood mainstream players for a simultaneous release in overseas theaters, including North America.
Another Chinese animation studio, iQiyi, is working on “Master Zhong”, anticipated to be released in China this year. Ya Ning, a senior vice president at iQiyi, noted that Chinese animation is shedding its “childish” image and evolving into a full-fledged industry, branching into movie merchandise and games.
Chinese animated films have only begun making an impact in the last decade, with films like “Big Fish and Begonia” standing out. This film, released by Beijing Enlight Media in 2016, was hailed as a unique and bold fantasy adventure in the Chinese animation industry. This same producer was also behind the “Ne Zha” series, with “Ne Zha 2” accounting for half of the box office during the Spring Festival holiday period.
Notably, the success of “Ne Zha 2” can be attributed to its appeal across all age groups. The film has surpassed Pixar’s “Inside Out 2” as the highest-grossing animated film worldwide with over 13 billion yuan ($1.79 billion) in ticket sales.
The Chinese animation industry has seen a shift from the traditional in-house production model, as demonstrated by the makers of “Ne Zha 2”, who collaborated with various studios. Additionally, government subsidies have played a significant role in supporting domestic animation. The government’s plan also specifies that domestic films should account for at least 55% of the country’s annual box office sales.
While Chinese animated television series often draw from online stories written by relatively unknown authors, some studios are leveraging generative AI for filmmaking. For instance, Kuaishou, a short-video streaming app, is releasing “New World Loading”, a seven-part mini-series largely created using the company’s Kling AI for video generation. This innovative use of technology indicates the exciting future prospects of the Chinese animation industry.
