China's animation industry is having a blockbuster summer, with the animated film "All Wishes Come True" emerging as a surprise hit. As of August 9, the film had grossed more than 1.4 billion yuan ($195 million) at the box office, making it one of the highest-grossing domestic animated films of the year, according to film data platform Beacon.

The success highlights a broader shift in China's film market.

Once dominated by imported titles, the animation sector is now increasingly being led by local productions – backed by stronger storytelling, technological innovation and a maturing industry.

China's National Film Administration showed that animated films generated a combined box office revenue of 25.49 billion yuan in 2025. Ne Zha 2 alone grossed 15.45 billion yuan in China and more than 400 million yuan overseas, placing it among the five highest-grossing films of all time and the highest-grossing animated film in box-office history worldwide.

Behind the box-office boom is the rapid development of China's animation industry.

In recent years, domestic studios have become increasingly self-reliant, moving away from dependence on overseas technologies and production teams. Fully original projects made through largely domestic production processes are now becoming more common.

Ne Zha 2, for instance, features more than 1,900 visual-effects shots and over 10,000 visual-effects elements from 138 Chinese animation companies. The film also blends traditional Chinese ink-wash aesthetics with 3D animation using a locally developed dynamic ink-wash rendering engine, highlighting the growing technical capabilities of Chinese animation studios.

As Chinese animators continue to expand creatively and technologically, more films rooted in traditional Chinese culture are making their way to international audiences.

Ne Zha 2 has been released in markets including Australia, the US, New Zealand, Singapore, Malaysia, Indonesia and the Philippines, where it has drawn interest from local audiences. Meanwhile, the success of "All Wishes Come True" domestically is expected to snowball as it hits theaters in Australia, New Zealand, North America, the UK, Ireland and the Netherlands in the coming months.