Ne Zha 2 Tops Global Box Office, Challenges Disney’s Animation Reign

Southerton Business Times
Sep 21, 2025
2 min read

Animated characters stand ready for battle, surrounded by swirling water and fire. Bold yellow text reads "NE ZHA 2." Energetic and dynamic. — Chinese blockbuster Ne Zha 2 surpasses Inside Out 2 with $1.7B (image source)

Chinese fantasy sequel Ne Zha 2 has become the highest-grossing animated film ever, raking in over US $1.7 billion worldwide and surpassing Pixar’s Inside Out 2. Its extraordinary performance—driven almost entirely by the domestic market—sends a stark message to Hollywood studios, notably Disney, that audiences of all ages gravitate to compelling stories over ideological branding.

Ne Zha 2 crossed the US $1.7 billion mark domestically on Wednesday, overtaking Inside Out 2’s US $1.699 billion global haul, according to Deadline’s box-office tracker. Maoyan data shows the film has already earned RMB 12.47 billion (approximately US $1.72 billion) in China alone, with projections to reach RMB 15.1 billion (US $2.08 billion) by its extended March run.

“This milestone isn’t about national pride alone—it’s proof that quality animation, rooted in cultural authenticity, resonates universally.”— Emma Carter, senior analyst, Ampere Analysis

Industry observers note Ne Zha 2’s success underscores two seismic shifts. First, China’s $8.9 billion domestic box office in 2024 has created enough scale for local animations to rival global blockbusters. Second, Japan’s anime industry—buoyed by hits like Demon Slayer: Mugen Train—continues to expand its international footprint, capturing teen and family audiences hungry for fresh narratives.

For Disney, which relies heavily on legacy franchises and a growing slate of socially conscious messaging, the rise of Sino-Japanese productions may prompt a strategic rethink. Recent Disney releases such as Elemental and Wish have underperformed expectations, fueling debate over whether “woke” staffing and overt moralizing have overshadowed craft and storytelling. Ne Zha 2’s breakneck run suggests that parents simply want their children to watch well-told, emotionally engaging films—regardless of origin.

“Disney must ask itself whether its latest features deliver the imaginative escapism families seek, or succumb to didacticism.”— Ravi Anand, animation commentator for Variety

Behind Ne Zha 2’s box-office haul lies a decade of government incentives for home-grown studios, investment in cutting-edge CGI and a nationwide push to export culture under China’s Belt and Road framework. Japanese anime, by contrast, thrives on boutique craftsmanship, serialized storytelling and passionate fan communities. Together, they form a potent alternative to Western animation’s one-size-fits-all model.

Background

Inside Out 2 claimed the top spot in summer 2024, leveraging Pixar’s brand cachet and a $200 million marketing blitz. Yet it ultimately garnered just under US $600 million domestically and US $1.099 billion internationally—a testament to Hollywood’s reliance on global roll-outs. Ne Zha 2, by contrast, achieved its record without a North American release, highlighting the growing commercial heft of Asian markets.

What’s Next

As Ne Zha 2’s run continues overseas, Disney faces mounting pressure to realign its animation strategy. Key questions loom: Will the studio double down on cultural universality and invest in global co-productions? Or will it risk ceding youth and teen audiences to China’s blockbuster ambitions and Japan’s anime exports? The answer could reshape children’s entertainment for years to come.