China’s 'Ne Zha 2' signifies a 'DeepSeek moment' in the international cinema landscape
China's 'Ne Zha 2' signifies a pivotal moment for the global film industry, often referred to as a 'DeepSeek moment.'
TroibNews 
Editor's note: Ankit Prasad is a CN Biz commentator. The article reflects the author's views and not necessarily those of CN.
During the recent Spring Festival in China, two notable homegrown achievements emerged across different sectors. The launch of DeepSeek's artificial intelligence model has significantly influenced global dialogues around AI. Meanwhile, a less expected milestone occurred in the film industry, where a Chinese animated movie has garnered international acclaim.
On February 14, "Ne Zha 2," a Chinese animated fantasy film, was released in North America, making history as the only non-Hollywood entry among the current top 50 highest-grossing films of all time. This list, which historically favors more recent releases due to inflation, has long illustrated the supremacy of the U.S. film market. However, this dominance is now being challenged, which some movie fans might view as a positive shift.
"Ne Zha 2" achieved significant commercial success, particularly when its domestic earnings surpassed the $936 million earned by "Star Wars Episode 7: The Force Awakens" in 2015, making it the highest-grossing film in a single market. This milestone demonstrated that a Chinese film could outgross the highest Hollywood earnings in the U.S. market.
The film's release coincided with the Spring Festival holiday, alongside several highly anticipated blockbusters. "Detective Chinatown 1900," which also debuted the same day and features stars like Chow Yun-fat in a sequel to prior successful films, has already earned nearly $400 million in China, showcasing the competitive landscape of domestic productions.
According to Gower Street Analytics, the global box office is projected to reach $33 billion in 2025, an 8 percent increase from 2024, with the U.S. market expected to generate $9.7 billion. Surprisingly, the Chinese market is estimated to have earned $6 billion in 2024 and is forecasted to grow to $6.6 billion this year. Gower Street’s projections, made prior to the release of "Ne Zha 2," take a conservative stance on Chinese earnings and are optimistic about the potential of big-budget Hollywood films, including "Avatar 3," Marvel's "The Fantastic Four: First Steps," DC's "Superman" reboot, as well as new installments in "Mission: Impossible," "Jurassic World," and more.
Notably, foreign films have traditionally found success in China. From the "Avengers" franchise to the "Fast & Furious" series, American films have performed exceptionally well at the box office. Even Indian movies such as "Dangal" and "Secret Superstar" have proven capable of earning greater revenues in China than at home. This ability of the Chinese market to translate foreign films into major financial successes underscores its position as a leading destination for global cinema.
Moreover, "Ne Zha 2" parallels DeepSeek in terms of quality, cost, and cultural significance. While DeepSeek is recognized for its open-source development intended for a global audience, the "Ne Zha" series draws inspiration from traditional Chinese lore, loosely based on the 16th-century novel "Investiture of the Gods." Anyone who has watched the English dub of the first "Ne Zha" film from 2019 can attest to its entertainment value and coherence, which rivals that of Western releases. The animation quality, too, stands out; just five years ago, the original film could have easily been mistaken for a production from Disney or Pixar, all while incurring costs much lower than similar films from the U.S. or Japan's revered Studio Ghibli.
Ultimately, "Ne Zha 2" symbolizes the maturation of the Chinese film market on the global stage. With this film setting records and generating substantial interest, production houses worldwide are sure to take notice.
Ian Smith for TROIB News
During the recent Spring Festival in China, two notable homegrown achievements emerged across different sectors. The launch of DeepSeek's artificial intelligence model has significantly influenced global dialogues around AI. Meanwhile, a less expected milestone occurred in the film industry, where a Chinese animated movie has garnered international acclaim.
On February 14, "Ne Zha 2," a Chinese animated fantasy film, was released in North America, making history as the only non-Hollywood entry among the current top 50 highest-grossing films of all time. This list, which historically favors more recent releases due to inflation, has long illustrated the supremacy of the U.S. film market. However, this dominance is now being challenged, which some movie fans might view as a positive shift.
"Ne Zha 2" achieved significant commercial success, particularly when its domestic earnings surpassed the $936 million earned by "Star Wars Episode 7: The Force Awakens" in 2015, making it the highest-grossing film in a single market. This milestone demonstrated that a Chinese film could outgross the highest Hollywood earnings in the U.S. market.
The film's release coincided with the Spring Festival holiday, alongside several highly anticipated blockbusters. "Detective Chinatown 1900," which also debuted the same day and features stars like Chow Yun-fat in a sequel to prior successful films, has already earned nearly $400 million in China, showcasing the competitive landscape of domestic productions.
According to Gower Street Analytics, the global box office is projected to reach $33 billion in 2025, an 8 percent increase from 2024, with the U.S. market expected to generate $9.7 billion. Surprisingly, the Chinese market is estimated to have earned $6 billion in 2024 and is forecasted to grow to $6.6 billion this year. Gower Street’s projections, made prior to the release of "Ne Zha 2," take a conservative stance on Chinese earnings and are optimistic about the potential of big-budget Hollywood films, including "Avatar 3," Marvel's "The Fantastic Four: First Steps," DC's "Superman" reboot, as well as new installments in "Mission: Impossible," "Jurassic World," and more.
Notably, foreign films have traditionally found success in China. From the "Avengers" franchise to the "Fast & Furious" series, American films have performed exceptionally well at the box office. Even Indian movies such as "Dangal" and "Secret Superstar" have proven capable of earning greater revenues in China than at home. This ability of the Chinese market to translate foreign films into major financial successes underscores its position as a leading destination for global cinema.
Moreover, "Ne Zha 2" parallels DeepSeek in terms of quality, cost, and cultural significance. While DeepSeek is recognized for its open-source development intended for a global audience, the "Ne Zha" series draws inspiration from traditional Chinese lore, loosely based on the 16th-century novel "Investiture of the Gods." Anyone who has watched the English dub of the first "Ne Zha" film from 2019 can attest to its entertainment value and coherence, which rivals that of Western releases. The animation quality, too, stands out; just five years ago, the original film could have easily been mistaken for a production from Disney or Pixar, all while incurring costs much lower than similar films from the U.S. or Japan's revered Studio Ghibli.
Ultimately, "Ne Zha 2" symbolizes the maturation of the Chinese film market on the global stage. With this film setting records and generating substantial interest, production houses worldwide are sure to take notice.
Ian Smith for TROIB News
