Chinese animated blockbuster "Ne Zha 2" has dethroned Disney's 2024 picture "Inside Out 2" to become the highest-grossing animated movie of all time globally.

As of Tuesday evening, the film's worldwide earnings, including presales, surpassed 12.319 billion yuan (about 1.72 billion U.S. dollars), according to data from ticketing platform Maoyan.

This milestone comes just 20 days after its release on Jan. 29 during the Chinese New Year and a mere day after it entered the all-time global box office top 10.

The achievement adds to an impressive list of records for the film, including being the first to gross 1 billion U.S. dollars in a single market and the first non-Hollywood title to join the coveted billion-dollar club. Current projections from Maoyan and box office tracker Beacon suggest that the film is on track to surpass 15 billion yuan in total domestic earnings.

Shattering multiple records, "Ne Zha 2" has significantly raised the ceiling for single-film earnings, said Lai Li, a Maoyan analyst. "This success has not only boosted the confidence of creators but also showcased the resilience and immense growth potential of the Chinese market."

The film's monumental success is set to deliver substantial commercial returns for its production company, Enlight Media, and its director, Yang Yu, known as Jiaozi. Enlight's stock price has surged in recent weeks, reflecting investor optimism.

Jiaozi, a self-taught animator and former pharmacy student, has become a symbol of perseverance and dedication within China's creative community. His story of relentless efforts and pursuit of excellence in crafting the "Ne Zha" series has resonated with many.

"Ne Zha 2" marks a striking leap forward from its predecessor, the animated hit "Ne Zha," which grossed 5 billion yuan to top the Chinese box office charts in 2019. The sequel continues the tale of Nezha, the iconic boy god from Chinese mythology. After their souls are saved, Nezha and his ally Aobing struggle to maintain their physical forms. With the help of the immortal Taiyi Zhenren, the two must navigate a series of challenges to rebuild their bodies and secure their fate.

The film's rich storytelling, paired with jaw-dropping visuals, has captured audiences' imaginations, while the film's themes of defiance, fate and self-confidence resonate universally. Rao Shuguang, president of the China Film Critics Association, lauded the film for skillfully blending traditional Chinese mythology with modern storytelling, creating a narrative that speaks to contemporary sensibilities.

Alongside its cultural depth, "Ne Zha 2" has garnered widespread praise for its technical mastery. Featuring around 2,000 special effects shots and contributions from 138 animation studios, the film exemplifies the collaborative power of China's creative ecosystem and heralds an upgrade in both the film industry and its aesthetic standards, noted Chen Xuguang, director of the Institute of Film, Television and Theatre at Peking University.

In a video interview, Jiaozi reflected on the personal journey the "Ne Zha" films have taken him on, revealing how the series has evolved from his own passion into a broad cultural phenomenon.

"The first step was creating something I loved, and domestic audiences loved it too," he said. "Over time, I've worked to improve it, to refine my craft. I believe that one day, new ideas, deeper meanings and new soul will emerge from it, and the whole world will be able to appreciate it."

The triumph of "Ne Zha 2" also underscores the growing appetite for homegrown content among Chinese audiences. In recent years, there has been a resurgence of interest in traditional culture, fueled by a sense of national pride and a desire for stories that reflect China's unique heritage. According to Shi Anbin, director of the Israel Epstein Center for Global Media and Communication at Tsinghua University, films like "Ne Zha 2" and video games like "Black Myth: Wukong" are part of a broader cultural renaissance in which ancient tales are reimagined through a modern lens.

Industry analysts have hailed the film's success as a testament to the vitality, appeal and creative strength of Chinese culture.

Largely driven by "Ne Zha 2," China's box office revenue during the 2025 Spring Festival holiday hit a record high, injecting much-needed optimism into the country's film industry, which saw earnings fall by 23 percent in 2024 compared to 2023, and by 34 percent from the pre-pandemic peak in 2019.

Beyond its domestic success, "Ne Zha 2" is poised to serve as a cultural bridge, offering global audiences a window into China's rich mythology and traditions. The film has already opened in overseas markets, such as Australia, New Zealand and North America, where it has received critical acclaim.

"It blew my mind," said Sheila Sofian, a professor at the University of Southern California and a member of the Academy of Motion Picture Arts and Sciences, praising the film, particularly for its production design, sound design and music, in a video interview shared by China Media Group.

Highlighting the film's universal themes, she added, "We could all connect with them."