Ne Zha 2 Beats Inside Out 2! How It Became the Highest-Grossing Animated Film Ever

Ne Zha 2 Beats Inside Out 2! How It Became the Highest-Grossing Animated Film Ever

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The biggest blockbuster of the year so far isn’t from Marvel, Pixar, or James Cameron. In fact, most American moviegoers aren’t even familiar with it—because it’s barely playing in the U.S.

China’s animated sensation Ne Zha 2 has taken the global box office by storm, earning an astonishing $1.9 billion in just four weeks. That’s nearly double what Star Wars: The Force Awakens made in North America, making Ne Zha 2 the highest-grossing movie ever in a single territory. Even more impressively, it reached that milestone in just 11 days—compared to the 165 days it took The Force Awakens.

But the records don’t stop there. Ne Zha 2 is officially the highest-grossing animated film of all time, surpassing 2024’s Inside Out 2 ($1.66 billion). And at this rate, it will soon become the first animated movie to break the $2 billion mark.

For China, Ne Zha 2 is more than just a box office hit—it’s a cultural phenomenon. The film’s massive success comes at a time when U.S.-China relations are strained, with new tariffs imposed by President Donald Trump. Many in China see the movie’s success as a point of national pride.

“Since Ne Zha 2 is now competing with Hollywood films for records, it has become a duty to promote and support the film,” says Stanley Rosen, a professor at USC specializing in political science and international relations. “It’s become a litmus test of patriotism.”

A Perfect Storm for Box Office Success

Several factors have contributed to Ne Zha 2’s unprecedented success, including strong reviews, a prime release date during the Lunar New Year, and a growing sense of nationalism among Chinese audiences. According to China’s top box office tracking agency, Maoyan, ticket sales are expected to hit $2.09 billion before the film’s run ends. That would make it the fifth highest-grossing movie in history—just ahead of The Force Awakens and just behind Titanic ($2.26 billion).

Unlike other box office giants, though, Ne Zha 2 has reached these heights almost entirely without help from international markets. While it has earned around $15 million in North America—impressive for a Chinese-language film—it’s a drop in the bucket compared to its overall haul.

“Even after the holiday ended, Ne Zha 2 continued to dominate, with only minimal declines on weekdays,” says Maoyan analyst Lai Li. “At its peak, it accounted for over 70% of the market share.”

The film is a sequel to 2019’s Ne Zha, which was already a hit with $726 million worldwide, but Ne Zha 2 has far surpassed its predecessor. One reason? Timing. The first film debuted in the summer, but the sequel launched during the two-week-long Lunar New Year holiday—a prime moviegoing season in China when families have plenty of time for repeat viewings.

“These phenomena take on a life of their own, just like ‘Barbenheimer’ in the U.S.,” says Rosen. “Everyone is talking about it, so you have to see it—sometimes more than once—to be part of the conversation.”

A Story That Resonates

Beyond its record-breaking numbers, Ne Zha 2 is also striking a chord with audiences because it’s rooted in Chinese mythology.

“This story has deep cultural roots that resonate with viewers,” explains Adrian Tong, a senior analyst at Media Partners Asia. “It also blends in contemporary themes like social justice, which appeal to younger generations.”

The film’s producers, Christopher Chen and Alina Yan Qiu, compare Ne Zha 2’s massive leap from the first film to James Cameron’s Terminator franchise.

“The original Terminator in 1984 did well, but it was Terminator 2: Judgment Day in 1991 that became a runaway hit,” they explain. “The jump in animation quality between Ne Zha and Ne Zha 2 is just as significant.”

That stunning animation has made the film a major draw in IMAX theaters, where it has racked up $131 million—making it the highest-grossing IMAX release ever in China, surpassing Avengers: Endgame ($83.5 million). Only 16 films in history have crossed the $100 million mark in IMAX, and Ne Zha 2 is among them.

“Every time we think the numbers are plateauing, they keep holding up,” says IMAX CEO Richard Gelfond. “People were eager to see a beloved film with incredible animation and an epic story.”

China’s Changing Box Office Landscape

A decade ago, Hollywood blockbusters dominated the Chinese market, with hits like Avatar and Avengers: Endgame earning hundreds of millions in China alone. But in recent years, Chinese audiences have gravitated more toward homegrown films.

That shift hasn’t been enough to prevent an overall decline in China’s box office. After briefly overtaking North America as the world’s largest theatrical market during the pandemic in 2020 and 2021, China’s movie industry has struggled. In 2024, total revenues fell to $5.9 billion—a 23% drop from 2023 and 27% lower than pre-pandemic levels.

Still, analysts believe a few major hits—like Ne Zha 2—could help revive the market.

“High-quality films will make the box office more sustainable,” Rosen says. “The big question is: How many more Ne Zha-level hits can China produce to bring its box office back to what it used to be?”

For now, Ne Zha 2 is proving that Chinese films can compete—and win—on the world stage, even without Hollywood’s backing.