The Next Big Anime Rival Might Not Come From Japan

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Anime is more popular than ever before. It’s now completely accepted, and fans no longer have to hide their enthusiasm or limit discussions to small groups. In 2024, the Japanese anime industry reached a record $25 billion, attracting viewers around the globe. While Japan continues to lead in animation, China’s industry is also rapidly growing.

China’s animation industry is booming. In 2025, it earned $3.54 billion in ticket sales, according to the Global Times. While China has a massive domestic audience and millions of streaming viewers, its animated content – known as donghua – is now gaining popularity worldwide. Demand for these series and films is higher than ever, and the increasing quality of Chinese animation is positioning China as a serious competitor to Japan in the global anime market.

China’s animation industry is booming, with increasing revenue leading to better quality shows and movies. Last year, China accounted for over 6% of the global anime market. While Japan is still expected to dominate the industry, Chinese animation is predicted to grow significantly over the next ten years, potentially reaching almost $6 billion in revenue by 2033.

China’s Culture & Mythology Are a Major Strength in Donghua’s Popularity

Chinese animation stands out on the world stage, offering a style unlike Disney films or Japanese anime. Instead of trying to copy Hollywood, Chinese studios draw heavily on their own rich culture – myths, legends, martial arts stories, and fantasy traditions. Many of the most popular Chinese animated series and movies are based on these uniquely Chinese stories and visual styles.

I remember watching Monkey King: Hero Is Back back in 2015, and while it wasn’t flawless with its animation, it really stood out with its incredible Wuxia-style fight scenes and its unique spin on the classic Journey to the West story. Looking back, I can see how much that film paved the way for other animated hits like White Snake, Ne Zha, Jiang Ziya, and even Ne Zha 2 – all of which helped build up China’s animation industry. It turns out Ne Zha, Jiang Ziya, and Ne Zha 2 were all based on Investiture of the Gods, a hugely important novel in Chinese literature. This story really shaped how Chinese people pictured their mythology. Before Investiture of the Gods, China’s gods and legends were fragmented, existing as separate regional tales, part of Daoist beliefs, or simply passed down through storytelling. Xu Zhonglin brought everything together, weaving together folklore, culture, and religious practices into one grand mythological world.

With a worldwide box office of over $2.2 billion, Ne Zha 2 is now the highest-grossing animated film ever and one of the top five highest-grossing movies of all time. The film beautifully showcases Chinese mythology through stunning animation and exciting action. Its success demonstrates a clear international appetite for animated content that strongly reflects Chinese culture, much like the enthusiasm anime fans have for distinctly Japanese works. Chinese mythology provides unique stories, characters, and a fresh perspective for audiences around the world.

Chinese Animation’s Quality is Only Getting Better While the Rest of the World Struggles

Anime fans everywhere appreciate visually appealing shows, and Chinese animation studios have made huge strides in recent years. The quality of Chinese animation is now exceptional. For example, Ne Zha 2 is a stunning film with incredibly smooth animation and a vibrant art style. Even Chinese animated series consistently deliver impressive visuals that compete with the best from Japan and the United States.

Even well-known series like Dragon Ball sometimes need to be remade due to poor animation, and even expensive shows like Invincible can have noticeably rough visuals. This makes the recent quality coming out of China’s animation industry particularly impressive. Shows like To Be Hero X, Link Click, and Scissor Seven stand out with their unique and enjoyable art styles, avoiding the common look found in many modern anime. While Japan has a long and respected history in animation, China is quickly becoming a strong competitor, creating high-quality, original content that’s unlike anything else available.

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2026-05-14 21:11