Zeyingtai Steven Lyu interviewed by Elise Liu on "The Unexpected $2 Billion Film Giant: Ne Zha 2"

Inside Out 2 was widely expected to dominate the animated film market in 2025. With Hollywood's longstanding reputation and global reach, few questioned its inevitable success. But that changed when Ne Zha 2 emerged from China, earning over $2.1 billion worldwide and redefining the global animation landscape.

Released on January 29, 2025, Ne Zha 2 is a Chinese animated fantasy action film directed by Yang Yu, also known as Jiaozi. The sequel was produced by Coloroom Pictures and Beijing Enlight Media. It continues the tale of the mythological figure Ne Zha from the 2019 hit Ne Zha. The movie loosely draws from the classic 16th-century novel Investiture of the Gods from the Ming Dynasty and follows the story of a rebellious demon born into conflict. While the original film was praised for its humor and action, the sequel deepens Ne Zha's journey, his relationships, and his role in the complex world. By combining mythology with modern cinematic storytelling, the film introduced audiences, especially younger viewers, to traditional Chinese tales in a form that felt bold and fresh.

With a production budget of approximately $80 million, Ne Zha 2 has reached unprecedented milestones. It has grossed over $2.1 billion worldwide, making it the highest-grossing animated film of all time and the fifth highest-grossing film overall. Notably, it is the first non-Hollywood and non-English-language film to surpass the $2 billion mark. Most of its early revenue came from Chinese theaters, but the film's reach extended quickly, with successful releases US, Canada, Singapore, European countries, and more. The animation is lush, dynamic, and deeply expressive. The story itself tackles themes of identity, redemption, and destiny. The tone is deeply intimate, especially when it touches on the themes of familial love.

To understand how a non-Western animated film achieved such rare global appeal, I spoke with Steven Lyu, a director and producer with a BFA in Film and Television Production and an MA in Film and Media from John Hopkins University, where he concentrated on the business of film. With a background that bridges both creative and production landscapes, Lyu offered critical insight into why Ne Zha 2 resonated so widely (all translated from Chinese)."Director Jiaozi poured years of care into every detail of this film. His ability to balance studio demands while staying true to his creative vision is incredibly rare."

Yet despite its success, Ne Zha 2 still faced barriers. Western media coverage was limited in the early weeks of release and much of the available box office data had to be translated or sourced directly from Chinese platforms like Maoyan. (the largest online movie ticketing website in China). Language barriers and cultural unfamiliarity continue to be obstacles for global reach. Lyu noted that Ne Zha 2 stood out in a global market lacking originality, especially as Hollywood increasingly relies on sequels, "This overreliance on franchises is a warning sign for the industry. The storytelling space is shrinking, and if that doesn't change, the whole industry risks stagnation."

While Ne Zha 2 shares some of the cinematic polish and pacing familiar to global audiences, it does have a few differences from typical Hollywood films. There is a lot of cultural specificity in this film. It deeply embraces Chinese culture, mythology, and language and invites viewers to immerse themselves in this culture, whether they are familiar with it or not. The visual style also differs from the typical clean animation. It includes hybrid styles, including traditional Chinese ink painting influences. Ne Zha 2 offers a refreshing contrast to what many expect from mainstream animation. Lyu says there is "delicate boundary that must be respected," and you cannot just "suddenly throw in trendy Western elements or go fully surreal." According to Lyu, audiences in China are growing to accept more and more of modern animation partly due to "more Chinese students returning from overseas education."

Lyu pointed out that the film's cultural uniqueness is exactly what made it stand out in a saturated and risk-averse global animation market. "In recent years, it's been rare to see to see truly excellent films emerge from Hollywood or elsewhere," he said. "Ne Zha 2 stood out precisely because the global market was starved for good stories, and this film delivered a deeply crafted one."

Ne Zha 2 broke records and has broken expectations. Its success shows that global audiences are open to and deeply engaged with stories that are culturally specific, emotionally grounded, and innovative. As animation studios around the world take note, this moment may mark the beginning of a new era for film animations. Although one movie alone may not change the strong Hollywood industry, but it does prove that it is possible for a non-Hollywood film to reach and possibly surpass them.

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