In a twist no one saw coming, Disney’s Inside Out 2 has lost its crown as the highest-grossing animated film of all time—just weeks after claiming the title. The record-breaking achievement now belongs to Ne Zha 2, a Chinese animated feature that has quietly but powerfully made cinematic history.

According to Box Office Mojo, Inside Out 2 grossed a monumental $1.7 billion globally, becoming not only the most successful film of last year but also the highest-grossing animated film ever—at least for a moment. Enter Ne Zha 2, a sequel to the 2019 fantasy hit Ne Zha, which has since surged to an eye-watering $1.9 billion, toppling Disney’s latest hit in the process.

From Modest Release to Mega Success

What makes Ne Zha 2’s triumph especially remarkable is its reach—or lack thereof. While Inside Out 2 opened in over 4,400 North American theaters, Ne Zha 2 premiered in just 945. Despite this limited exposure, the film captivated audiences, particularly in China, where nearly all of its earnings were generated.

Based on Chinese mythology, Ne Zha 2 continues the tale of a demon child, Ne Zha, who embarks on a journey to revive his friend, the dragon prince Ao Bing. With its stunning animation, intense action sequences, and layered symbolism, the film resonated deeply with domestic audiences and drew millions to theaters—especially during the Lunar New Year holiday, a prime time for family outings.

Limited International Reach, Yet Record-Breaking Impact

While its domestic success is historic, the film’s international earnings remain modest: just $20 million in North America and $2.2 million in Europe. Nevertheless, it has already become the highest-grossing Chinese film in Europe in two decades, according to Cedric Behrel of Trinity CineAsia.

Plans are now in motion to expand its global reach. At the Beijing International Film Festival, CMC Pictures announced an upcoming English-dubbed version featuring prominent voice actors, alongside a robust international marketing campaign involving social media and television promotions.

Cultural Phenomenon Meets Strategic Timing

Part of Ne Zha 2’s success can be attributed to timing and national sentiment. Released during the Lunar New Year, the film benefited from a cultural tradition of family moviegoing. Its runaway success turned it into a word-of-mouth phenomenon, with support from local businesses offering themed promotions and discounts tied to the film.

As China’s best-performing animated film ever—and now the ninth highest-grossing movie of all time globally—it’s edging close to Spider-Man: No Way Home, which sits just $22.9 million ahead.

A Political Undercurrent?

The film's success also arrives at a time of increasing trade tension. Rumors are swirling that China may consider banning Hollywood films in response to the United States' imposition of 145% tariffs on certain Chinese imports. If such measures are enacted, domestic films like Ne Zha 2 may dominate Chinese box offices even further.

Conclusion

What began as a modest release has now reshaped the global animation landscape. With a $1.9 billion haul and counting, Ne Zha 2 not only outpaced a Disney juggernaut—it solidified the rising power of Chinese cinema on the world stage. And with a global push on the horizon, the story of Ne Zha may be far from over.