The tale of a rebellious young deity who battles dragons is the first movie to earn over $1 billion in a single market, overtaking Star Wars: The Force Awakens which made $936 million in the United States in 2015.

Released on Jan. 29 to coincide with the Lunar New Year holiday, a prime movie-going time in China, the film has reignited the country’s film industry after 2024 saw box office receipts slump 23% compared to a year earlier.

A sequel five years in the making, Ne Zha 2—which draws on the 16th-century novel Investiture of the Gods—has tapped into both growing demand for products that draw from traditional Chinese stories, and national pride in China’s technological progress.

“Ne Zha is deeply rooted in Chinese culture,” 36-year-old Gao Zhen, who watched the movie with his child, told AFP in Beijing.

“We resonate with the characters and background.”

Audiences have also pointed to the movie’s special effects as evidence of China’s film industry catching up with, or even surpassing, Hollywood’s offerings.

“Foreign movies may have dazzling visuals, but Chinese cinema has also mastered those techniques now,” Gao said.

“I used to prefer Western animation, like Disney and Pixar. But now, Chinese animation is getting stronger, and I prefer domestic productions more,” 26-year-old media worker Qu Peihong told AFP.

‘Boosted confidence’

The original Ne Zha became China’s highest grossing animated film after it was released in 2019.

Ne Zha 2 surpassed all former domestic box office record holders—including the 2019 sci-fi hit The Wandering Earth and 2021’s patriotic war film The Battle at Lake Changjin—in just nine days.

After a barren spell for standout films in China last year, the return of Ne Zha “has boosted people’s confidence in the industry”, Qu said.

According to local media reports, director Jiao Zi, whose real name is Yang Yu, said he originally tried to work with international partners on the film but found the outcomes not up to standard and instead used an all-Chinese team.

Some fans have speculated that the film also contains hidden geopolitical symbolism, suggesting the villain’s palace is a reference to the U.S. Pentagon or White House, though the filmmakers haven’t commented on these rumours.

“This film far exceeded my expectations, it was really exciting. When I exited the cinema, I felt a deep sense of pride as a Chinese person,” 22-year-old Zhang Zhengfa told AFP.

“I think there will be more in the future. I believe this is just the beginning.”

‘Rebellion and nonconformity’

The film’s success proves that “Chinese animation has grown into a powerhouse and can rival Disney and Japanese animations in the Chinese domestic market”, Ying Zhu, author of Hollywood in China, told AFP.

The film has “transformed a traditional folklore into a modern tale of individuality, which struck a chord with audiences”, she said.

Audiences have chimed with the film’s story of “rebellion and nonconformity”, similar to how they embraced the plot of hit video game Black Myth: Wukong last year, CEO of data company BigOne Lab Robert Wu wrote in his newsletter.

“Black Myth” combines the classic 16th-century Chinese novel Journey to the West with cutting-edge graphics, and the main character is a fun-loving and defiant Monkey King who battles demons.

But while the game became an international best-seller, there is less certainty around how Ne Zha 2, based on a legend little known outside of China, will be received elsewhere, given the limited reception of the original.

“I don’t think [foreign audiences] will understand it as deeply as we do,” said moviegoer Qu. “But I hope this movie will help them to understand Chinese culture.”