An animated film, telling a story inspired by a 16th-century Chinese novel, has delighted audiences worldwide and seen record sales in the process. A hero’s journey about an unlikely hero, Ne Zha 2 tells the story of a rebellious young boy who ventures out to fight dragons and fulfill his destiny. As well as reimagining a classic Chinese narrative for a new generation, the success of this film tells another story, that is, the tale of how to market movies effectively in today’s competitive entertainment landscape.

For decades, Hollywood movies have been the dragon in the room, dominating release calendars and ticket sales in many markets. Yet in China, the popularity of domestic film productions continues to grow, fueled by the influential combination of enhanced product quality on the supply side and growing nationalistic pride on the demand side. 

To capitalize on such trends, filmmakers strategically released Ne Zha 2 in China at the beginning of the Lunar New Year holidays, when parents are most likely to take their children to the theater. The movie netted a remarkable $1.4 billion in domestic ticket sales in just over two weeks. Following such a stunning success, they released the film with a carefully designed, staggered schedule: first in Australia and the United States in mid-February 2025, then expanding into smaller markets throughout Asia and Europe in March. Viewers living in these far-flung locations, whose movements are part of the larger Chinese diaspora, have self-identified as especially relevant market segments. Chinese parents living far from their country of birth have embraced the movie as a heart-warming and enjoyable way to instill cultural pride in their families while living abroad. 

But Ne Zha 2 resonates with audiences more widely too, due to its universal appeal. The film’s themes translate globally, offering meaning to viewers of all backgrounds. In particular, the story highlights the importance of community, questioning authority, and defining oneself by one’s own terms. By mid-March 2025, Na Zha 2 had officially became the highest grossing animated movie of all time, as well as the fifth highest grossing movie of any format in worldwide measures. The gross profits from its international showing were estimated to be about $31 million; in total, it grossed an estimated $2.09 billion. Those numbers are temporary though; the film continues to enjoy persistent appeal and success, such that Na Zha 2 remained atop the box office charts in China for several weeks.

Some of the movie’s success clearly is specific to the film: It resonates with various audiences, and the marketing strategy designed to promote it was effective at getting it in front of as many of those audience members as possible. But it also reflects a potentially notable trend: Experts have long anticipated the rise of China’s film industry. Furthermore, it might be taken as an exemplar of the current state of international relations. The movie contains what some viewers perceive to be anti-American sentiments, including satirical references to the Pentagon, which seemingly align with China’s recent moves to limit the number of Hollywood movies that may be released in the country, arguably to encourage the further development of its own entertainment industry.

Discussion Questions

1. What product elements make Na Zha 2 so appealing to universal audiences? What marketing tactics support this appeal?
2. How are global and market trends likely to influence the rise of Chinese cinema, in relation to Hollywood films?

Sources: Naman Ramachandran, “China Box Office: ‘Ne Zha 2’ Leads Again, as New Releases Make Modest Debuts,” Variety, March 24, 2025; Nancy Tartaglione, “‘Ne Zha 2’ Overtakes ‘Star Wars: The Force Awakens’ to Become No. 5 Highest-Grossing Movie Ever WW–International Box Office,” Deadline, March 16, 2025; Nectar Gan, “China’s Animated Blockbuster Smashed Box Office Records at Home. Now It’s Hitting Western Cinemas,” CNN, February 14, 2025; Meg James, “China to Reduce the Number of Hollywood Films Allowed Amid Trade War,” Los Angeles Times, April 10, 2025