Ne Zha 2 and the Rise of China’s Homegrown Blockbusters

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Ne Zha 2 and the Rise of China’s Homegrown Blockbusters

For decades, Hollywood has dominated the global box office, with its formulaic franchises and billion-dollar budgets becoming the gold standard for blockbuster success. But in 2024, a new challenger has emerged—and it didn’t come from Los Angeles or London. It came from Chengdu.

Ne Zha 2, a $2.14 billion animated sensation from China, has done what no non-Hollywood, non-English-language film has ever achieved: it has broken into the exclusive billion-dollar club and soared past many Western hits in global box office rankings. Made with a modest (by blockbuster standards) budget of $80 million, and led by the enigmatic director known as Jiaozi (Mandarin for “dumpling”), Ne Zha 2 is the clearest signal yet that China’s domestic entertainment industry is not just catching up—it’s setting its own pace.

But while its domestic triumph is undeniable, its international journey paints a more nuanced picture of China’s evolving ambitions—and limitations—in global storytelling.

Ne Zha 2’s roots lie in one of China’s oldest mythologies, Investiture of the Gods, and the story it tells is both familiar and refreshingly rebellious. It follows the unlikely fusion of two mythological misfits, Ne Zha and Ao Bing, as they navigate a high-stakes, visually dazzling adventure. The film’s blend of Chinese folklore, sharp animation, and universal emotional arcs has won over audiences across Asia—and set new technical benchmarks for Chinese CGI.

The sheer scale of the production is noteworthy: a five-year labor involving 138 companies, 4,000 animators, and even China’s Guian supercomputing center. The animation had to be pushed to new heights—leopard fur rippling in the wind, dazzling IMAX sequences—all to meet Jiaozi’s vision. It wasn’t easy, but the result? A visual tour de force that rivals anything Pixar or DreamWorks can produce.

Domestic Triumph, Global Caveats

Ne Zha 2’s jaw-dropping revenue—$2.14 billion in four months—has mostly come from China, with Malaysia trailing far behind as the second-highest grossing market at just under $12 million. The contrast is stark when compared to Hollywood norms, where blockbusters often rely on international markets for 50–75% of their income.

This disparity reveals both the strengths and the growing pains of China’s film industry. Domestically, the movie struck a chord, becoming a source of national pride and a rallying point for conversations around cultural self-reliance.

Indeed, the online discourse around Ne Zha 2 has been laced with patriotism, comparisons to Pixar, and a sense of competition with Western media. It’s not just a film—it’s a statement.

But abroad, the film has had limited traction. Less than 2% of its revenue has come from outside China. Markets like Taiwan and Vietnam have yet to release it, in part due to strained political ties. Even in countries with significant ethnic Chinese populations, like Malaysia and Singapore, enthusiasm hasn’t translated into anything close to a global phenomenon.

The Cultural Translation Gap

Part of the challenge is cultural specificity. Ne Zha 2 is deeply embedded in Chinese mythology, symbolism, and narrative structures. While this authenticity resonates with domestic audiences, it can be a barrier to broader international appeal. Where Marvel retells myths with globalized metaphors and Western ideals, Ne Zha 2 plays unapologetically in its own mythos.

That’s not to say it can’t break through. Crouching Tiger, Hidden Dragon did. So did Parasite and Squid Game. But all of these leaned into universal themes—class struggle, betrayal, revenge—within a culturally specific framework. Ne Zha 2’s more overtly political undertones, as noted by some critics, may also limit its reach. A review in The Hindu lauded its anti-imperialist tone, but such messaging can polarize rather than unite global audiences.

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State Support and Private Creativity

Interestingly, Ne Zha 2’s triumph is being celebrated as a victory of China’s private sector creativity. Enlight Media, one of the film’s major backers, has reaped the rewards with a nearly fivefold increase in quarterly profits. It’s investing $168 million into a new animation center in Beijing and has greenlit more than a dozen new projects.

But once Ne Zha 2 showed commercial promise, the state stepped in. Local governments organized mass viewings. Schools and companies were encouraged to promote the film. Its domestic run was extended repeatedly, long after its peak, to maximize reach.

This hybrid of private initiative and public amplification may be the blueprint for China’s future content strategy: nurture grassroots creativity, then supercharge it with state-backed distribution muscle when it takes off.

A Blueprint for What Comes Next?

The question now is whether Ne Zha 2 is a one-off, or the start of something bigger. Rob Mitchell of Gower Street Analytics sees potential but urges caution: “To be more than an anomaly, there needs to be a steadier pipeline of appealing hits.”

That pipeline is beginning to take shape. With gaming hits like Black Myth: Wukong showing similar success, and Chinese AI tools like DeepSeek pushing into global tech arenas, a broader creative wave seems to be forming.

Ne Zha 2 has proved that billion-dollar storytelling doesn’t have to be built in Hollywood. But to truly reshape global media consumption, China will need to find the balance between cultural specificity and universal appeal—and keep producing stories that resonate across borders.

For now, though, it has done something remarkable: it has told a story, unapologetically its own, and made the world sit up and notice.

Interested in learning more about creator and entertainment space? Check out our previous coverage here:

• The Acceleration Era: AI After 2022 and What It Means for Builders

• The Quiet Reset of the Influencer Economy

• The True Costs of Being on YouTube

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Peeyush and Mohit

Disclaimer: The views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author's employer, organization, committee or other group or individual.