In recent years, Chinese animation has made significant strides. During the Lunar New Year of 2025, Na Tra: The Chaos in the Sea became a “box office bomb,” causing a major disruption throughout the industry. Not only did it dominate ticket sales within China, but it also created noticeable pressure on Hollywood, which had never been felt before.
Remarkable Achievements: Na Tra 2 and Revenue Surge
Since its release during the Lunar New Year, Na Tra 2 has consistently shattered revenue records. The film quickly surged past CNY 9 billion (approximately USD 1.23 billion) and is projected to reach CNY 16 billion (around USD 2.1 billion). This is not only a remarkable achievement for the Chinese market but also a testament to the growing appeal of local films, marking a significant milestone in the domestic film industry.
The success of Na Tra 2 is no accident. The film was backed by substantial investments from renowned production studios, coupled with state-of-the-art technology. The extravagant battle scenes between deities and mystical creatures, along with a rich array of characters, have brought a feast for the visual senses to audiences.
In addition to the plot, the film’s production quality has also been rated highly, skillfully weaving contemporary elements into the classic narrative. The complex relationship between Na Tra and his family, along with his coming-of-age journey, has resonated deeply with many audiences.
Hollywood Concerned: The Global Market is Shifting
Before the resounding success of Na Tra 2, several Western studios began to feel the pinch, especially as Chinese films began to take off. The film’s success on social media was a clear indication of Hollywood’s growing concern over the increasing dominance of Chinese cinema.
Throughout the past few decades, Hollywood has typically dominated the global box office through technological advancements and extensive distribution networks. However, blockbusters like Avengers: Endgame have set records continuously, creating an environment where Hollywood felt secure. But with Chinese films climbing the ranks, Hollywood’s complacency is shaken.
Every blockbuster film relies heavily on its domestic market. Even Hollywood cannot afford to ignore the Chinese market, where Na Tra 2 is set to break records. Although it has yet to achieve the same level of success in the West, the film is drawing substantial audiences in Asian countries, significantly impacting the global film landscape.
In a recent interview, actor Ngô Kinh remarked on the revenue shares from Wolf Warrior 2 among the highest-grossing films globally and how a significant portion of that revenue comes from China, stating, “Why not? Many Hollywood films generate a large portion of their revenue from China. Isn’t that a sign of success?”
Reality Check: Na Tra’s Success Cannot Change the Landscape of Chinese Animation
The success of Na Tra is a significant marker for Chinese animation, but it does not imply that the industry has resolved all its systemic issues.
From Big Fish & Begonia (2015) to Na Tra: The Chaos in the Sea (2025), the so-called “rise of Chinese animation” has been highlighted numerous times. However, audiences often find that many films do not meet their expectations in terms of quality.
While many have praised Na Tra 2 for its box office achievements, the overall revenue of Chinese animated films in 2024 is expected to reach only CNY 2.875 billion, with nearly CNY 2 billion coming from Boonie Bears: Back to the Past. In total, only two films will likely surpass the CNY 1 billion mark, compared to 15 foreign animated films that will cross that threshold.
After more than a decade of development, the number of animated films in China that exceed CNY 100 million in revenue annually still hovers around 3-4 titles. The industry’s prosperity or decline in recent years has been entirely dependent on a few leading companies.
According to Blue Whale Finance, since 2019, the domestic animation market has been largely determined by three major players: Enlight Media, Huaqiang Fangte, and Light Chaser Animation.
If these three companies continue to dominate the market or produce only specific projects, the total revenue of the Chinese animation sector will struggle to improve. If only two remain, or even just one company holds the market, the entire industry will likely face a downturn. Data shows that from 2019 to now, these three companies have accounted for over 85% of the total revenue from animated films, with the lowest percentage being 62.28% in 2021.
Comparing 2019 and 2023 shows significant fluctuations, with revenues reaching CNY 7.104 billion and CNY 5.027 billion, both largely due to contributions from these three companies.
In 2019, Enlight Media released Na Tra: The Chaos of the Sea (CNY 5.035 billion), Huaqiang Fangte released Boonie Bears: The Original Story (CNY 717 million), and Light Chaser Animation released White Snake: Origins (CNY 469 million). Combined, these three films generated CNY 6.221 billion, accounting for 87.57% of the total revenue from domestic animated films.
In 2023, the films from these three companies generated CNY 4.622 billion, making up 91.94% of the total industry revenue.
In contrast, the market struggled in 2020, 2021, 2022, and 2024, lacking significant hits from these three leading companies.
It is evident that while Na Tra 2 has achieved remarkable success, it cannot single-handedly change the trajectory of the industry. The Chinese animation sector requires more than just a few breakthroughs; it must aim for sustainable production, diversity, and depth of content.
