Four animated feature films made it into last year's top 10, with Disney's Zootopia 2 placing second and Ne Zha 2 taking the top position. The dominance of Ne Zha 2 and Zootopia 2 last year not only demonstrates the enduring power of a good sequel, but also reveals the Chinese audience's massive appetite for quality storytelling, regardless of origin. Homegrown animation has been benefiting not only from advancements in animation technologies, but also from improvements in the industrial ecosystem and a nationwide multi-industry boom in cultural innovation that has seen Chinese traditional culture drive the growth of films and television, video games, toys and consumer products.
Domestic films took the lion's share of revenue in both animated and live-action categories last year, bringing in 41.29 billion yuan ($5.92 billion). Films with patriotic themes are always well received in China, but with 2025 being the 80th anniversary of the end of World War II and the War of Resistance Against Japanese Aggression, patriotism and defending the country were themes that resonated especially deeply with audiences.
Chinese cinema's record-breaking year was achieved in the face of strong pressure from short video platforms and the massive rise in the popularity of micro-dramas. Art films were a major casualty of the increasing demand for "short, fast and thrilling" content. Over the past few years, there have been art films that gained market recognition every year, especially those with a nostalgic style. But in 2025, this trend seemed to be shattered.
While advances in AI technology and application were among the greatest drivers of the animation boom, the progress of these intelligent technologies also presented last year's greatest challenge to the film industry as a whole. AI-generated content placed unprecedented pressure on filmmakers in 2025, not only pushing them to work faster and cheaper, but also creating competition for authentic human creativity. With AI able to create scripts, digital protagonists, background scenery and more, industry creatives need to reconsider and reconfigure the value they bring to film production. BR
