China’s animation industry is experiencing a major surge, with domestic productions increasingly dominating the country’s box office while reaching audiences beyond its borders.
The latest success is “All Wishes Come True,” which had generated more than 1.4 billion yuan, approximately $195 million, at the Chinese box office as of August 9, according to film data platform Beacon. The film has emerged as one of the country’s highest-grossing domestic animated releases of 2026.
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Its performance reflects a broader transformation in China’s animation market, which was once heavily influenced by imported productions. Increasingly, locally produced animated films are gaining audiences through stronger storytelling, advances in animation technology and a growing pool of domestic creative talent.
China’s animation sector recorded significant growth in 2025, with animated films generating a combined 25.49 billion yuan in box-office revenue, according to figures from the National Film Administration.
The phenomenal performance of “Ne Zha 2” has been central to this transformation. The film generated 15.45 billion yuan in China and more than 400 million yuan overseas, placing it among the world’s highest-grossing films and making it the highest-grossing animated film globally by box-office revenue.
The success of these productions is also being supported by the increasing technological capabilities of Chinese animation studios. Production companies are taking greater control of their creative and technical processes, reducing reliance on overseas technologies and production teams.
“Ne Zha 2,” for example, contains more than 1,900 visual-effects shots and over 10,000 visual-effects elements created with contributions from 138 Chinese animation companies. The production combines traditional Chinese ink-wash aesthetics with 3D animation through a domestically developed dynamic ink-wash rendering system.
The growing technical expertise is allowing Chinese studios to combine traditional cultural elements with modern animation techniques, creating productions designed for both domestic and international audiences.
“Ne Zha 2” has already reached markets including Australia, the United States, New Zealand, Singapore, Malaysia, Indonesia and the Philippines, expanding the international visibility of Chinese animation. Meanwhile, “All Wishes Come True” is also preparing for a wider international release, with screenings planned across Australia, New Zealand, North America, the United Kingdom, Ireland and the Netherlands.
The expanding international distribution of Chinese animated films reflects a broader ambition within the country’s creative industries to develop globally competitive productions rooted in Chinese culture.
With stronger domestic studios, increasingly sophisticated technology and growing international distribution networks, China’s animation industry is moving beyond individual blockbuster successes toward a more established position in the global entertainment market.