A new animated film has shattered box office records for foreign releases in China, marking a significant and unexpected success at a time when Hollywood productions have generally struggled to find an audience there.
The sequel to the popular 2016 animal-themed comedy, released last week, has generated approximately 2 billion yuan in its first week. This performance not only makes it one of the year’s top films but also allowed it to break the single-day revenue record for an imported title, surpassing a previous benchmark set by a major superhero franchise.
This achievement is particularly notable given the broader context. In recent years, Chinese moviegoers have shown a strong preference for domestically produced films, leading to a decline in the performance of overseas releases. The strict controls on the number of foreign films allowed into the market each year make any breakout success a noteworthy event.
Industry observers point to several factors behind the film’s resonance. Analysts suggest its positive, unifying message has struck a chord with audiences amid current economic and global tensions. The enduring popularity of the original film’s characters, bolstered by years of sustained marketing and themed attractions within China, also created a ready-made audience eager for the sequel.
The film’s performance in China has, in fact, outpaced its initial North American earnings. A company executive involved with the production noted that the original film’s phenomenal success in China was unexpected, leading to an extended theatrical run at the time.
Despite this success, industry data underscores the dominant position of local cinema. Domestic productions continue to command the vast majority of box office revenue. A major Chinese animated film released earlier this year earned a colossal sum, far exceeding the total for all Hollywood releases in 2025 combined. Experts caution that such a domestic phenomenon is an exceptional case and not indicative of the performance of all local films.
While authorities have at times signaled a potential reduction in the quota for U.S. films, the actual number of Hollywood titles granted entry this year has increased compared to 2024. However, the overall revenue generated by these imports remains a fraction of the domestic total, indicating a highly competitive landscape.
Film critics note that the rise of patriotic, domestically-made blockbusters has captured the public’s imagination. Yet, they emphasize that the market still has room for compelling stories from abroad, suggesting that the key for foreign studios is creating content that genuinely connects with Chinese audiences on an emotional level, beyond mere origin. The success of this animated sequel demonstrates that when such a connection is made, the commercial rewards can be record-breaking.