The recent Spring Festival in China was more than a time for family reunions and traditional celebrations – it was also a moment that reflected Beijing’s growing influence in both technology and culture.
Two developments in particular stand out: the rapid ascent of DeepSeek’s artifical intelligence (AI) model, which is fueling fresh debates about global tech supremacy, and the unprecedented success of the animated film Ne Zha 2 (Ne Zha: Demon Child Conquers the Sea), which has disrupted Hollywood’s near-monopoly on global blockbusters. Together, these achievements reflect China’s growing role in shaping the industries that will define the future.
DeepSeek’s AI model and Ne Zha 2 are two sides of the same coin -one representing China’s technological ambitions, the other its cultural ascendancy. As China continues to push the boundaries of technology and creativity, the world will be watching closely, recognizing that the future of both AI and cinema may well be shaped by Chinese ingenuity
The international release of Ne Zha 2 on February 14 was not just another box office event. It became the first non-Hollywood film to break into the top 50 highest-grossing movies of all time, an arena long dominated by American blockbusters. While box office rankings shift with inflation and audience trends, the film’s $1.33 billion in worldwide earnings (till second week of February) signal a deeper shift – the slow erosion of Hollywood’s unchallenged dominance in global entertainment. This shows that China is no longer just a consumer of cultural products; it is becoming a major global producer in its own right.
The film’s artistic merit is undeniable, but its success also highlights the shifting dynamics in the global entertainment landscape. In China alone, Ne Zha 2’s earnings surpassed the $936 million mark set by Star Wars Episode 7: The Force Awakens in the USA, making it the highest-grossing single-market film in history. This achievement is not merely a testament to the Chinese film market’s strength but also a powerful statement about the capabilities of China’s film industry.
For the first time, a Chinese film has outperformed Hollywood’s biggest blockbuster in its home market, suggesting that the era of unchallenged American dominance in cinema may be nearing its end. Despite the intensely competitive environment of the Spring Festival holiday, marked by high-profile releases such as Detective Chinatown 1900, Ne Zha 2 emerged as the clear victor. Its record-breaking performance, grossing over $1.3 billion globally, cements its status as both a cultural and commercial phenomenon.
According to Gower Street Analytics, the global box office is projected to reach $33 billion in 2025, an 8 percent increase from 2024. The US market, traditionally the largest contributor to global box office revenue, is expected to account for $9.7 billion of this total, reflecting a 9 percent growth. However, the Chinese market, which generated an estimated $6 billion in 2024, is poised to grow to $6.6 billion this year. These projections, while conservative, highlight the rapid expansion of China’s film industry and its growing influence on the global stage. What makes these figures even more significant is that they predate the release of Ne Zha 2, suggesting that the actual growth could be even more substantial.
The success of Ne Zha 2 is part of a broader trend that has seen the Chinese market become a critical driver of global box office revenue. Historically, foreign films, particularly Hollywood blockbusters, have performed exceptionally well in China. Franchises like The Avengers and Fast & Furious have consistently earned significant portions of their global revenue from Chinese audiences.
Even non-American films, such as the Indian productions Dangal and Secret Superstar, have found unprecedented success in China, often outperforming their domestic earnings. This unique ability to provide a massive audience for both domestic and foreign films sets the Chinese market apart, making it one of the most important and dynamic film markets in the world.
What sets Ne Zha 2 apart is not just its commercial success but also its cultural and artistic significance. Much like DeepSeek’s AI model, which is open-source and designed to benefit the global community, Ne Zha 2 draws on traditional Chinese source material, specifically the 16th-century novel Investiture of the Gods. This fusion of ancient storytelling with modern animation techniques has resulted in a film that is both deeply rooted in Chinese culture and universally appealing.
The storytelling in Ne Zha 2 rivals the best Western releases, offering a compelling narrative that resonates across cultural boundaries. Similarly, the animation quality competes with Disney, Pixar, and even Japan’s revered Studio Ghibli, showcasing the technical prowess of China’s film industry.
The modest budget of Ne Zha 2 compared to Hollywood or Studio Ghibli productions highlights the efficiency and creativity of China’s film industry. This cost-effectiveness, combined with the film’s artistic and commercial success, challenges the conventional wisdom of the global film industry that high-quality entertainment requires exorbitant budgets.
The success of Ne Zha 2 marks a coming-of-age moment for the Chinese film industry. With its highest-grossing film of all time making waves and breaking records, China has firmly established itself as a major player on the global stage. Ambitious production houses worldwide will undoubtedly take note, recognizing the potential of the Chinese market and the creative talent it nurtures. More importantly, Ne Zha 2’s success is a testament to the power of cultural storytelling and the ability of a nation to leverage its heritage to create art that resonates globally.
In many ways, Ne Zha 2 and DeepSeek’s AI model are emblematic of China’s dual strategy of embracing innovation while staying rooted in tradition. Just as DeepSeek represents China’s ambition to lead in the field of artificial intelligence, Ne Zha 2 symbolizes the country’s desire to shape global cultural narratives
As China continues to push the boundaries of technology and creativity, the world will be watching closely, recognizing that the future of both AI and cinema may well be shaped by Chinese ingenuity. Now, China is positioning itself to wield similar influence, using its own cultural exports to shape how the world sees it. China’s twin successes in AI and cinema are not coincidental. They reflect a deliberate strategy to lead in industries that shape global narratives and define the future.
DeepSeek’s AI model and Ne Zha 2 are two sides of the same coin -one representing China’s technological ambitions, the other its cultural ascendancy. As China continues to push the boundaries of technology and creativity, the world will be watching closely, recognizing that the future of both AI and cinema may well be shaped by Chinese ingenuity.
