In recent weeks, Ne zha 2 has made headlines by becoming the highest-grossing animated film worldwide, establishing itself among the 10 highest-grossing films in global box office history. While the film has captured global attention, what many may not know is that this cinematic triumph has its roots in Chengdu, a city in southwestern China.

Chengdu’s charm
If you’ve seen a panda in a wildlife documentary or zoo, you’ve likely encountered Chengdu’s most famous residents. But there’s much more to the city. Just like Tokyo’s or Paris’ blend of history and modern art, Chengdu mixes ones of both worlds from ancient markets and temples to contemporary shopping districts. And like the iconic New York’s pizza or Mexico’s tacos, Chengdu’s spicy hotpot has earned a place in kitchens across the globe. Home to over 16 million people, Chengdu boasts a relaxed and welcoming lifestyle that also nourishes the city’s creativity and entrepreneurial spirit. A closer look at the city you will find beneath the animated hits like Nezha 2 lies a vibrant hub for tech and digital industries. But the question is why Chengdu?
A competitive and cooperative ecosystem
Much like Hollywood’s movie model in California, where everybody work together seamlessly and efficiently, animations in Chengdu can be made by a network of companies that are located just a stone’s throw from one another, from concept development to special effects and production. Nezha 2 is also born this way. For example, Cococartoon, the main production company, is situated near Qnanimation Studio, which contributed to character design, and MOREVFX, a company specializing in visual effects. With an environment of collaboration like this, over 1,000 enterprises in Chengdu’s cultural creative industries generate an annual output exceeding 39 billion USD, making it a major player in China’s creative economy.
Policy support
Animation production cannot be achieved over night. For example, Nezha 1 took five years to complete, and Nezha 2 took another five and a half years. Such long timelines require patience, market tolerance, and a helping hand. It is the city’s beneficial policies such as rent reductions, project support, and guidance for new ventures that small and medium-sized companies like those behind Nezha gain the breathing room to sustain their projects and take creative risks. By offering a range of financial incentives and resources, Chengdu is positioning itself as a key player in the global digital creative sector.

Chengdu’s innovation beyond animation
While animation may be Chengdu’s most visible success, the city’s innovation extends far beyond film. Chengdu has become a center for AI, robotics, biotechnology, and more. Breakthroughs here such as the China’s first quantum computing control system, the first “seed bank” for drug screening, surgical robots and so on highlight the city’s position at the forefront of global innovation. Chengdu’s support for these industries is also apparent in its financial initiatives. The city’s “sci-tech loan” system helps startups secure the capital they need to grow, addressing one of the biggest challenges faced by emerging companies. Over 4,000 companies have already benefited from this program, contributing to Chengdu’s growing reputation as a hub for innovation.
Ranking 23rd globally in innovation, Chengdu is home to over 1.45 million high-tech enterprises, 19 companies listed on the Sci-Tech Innovation Board, and 9 unicorns. As the city continues to attract international talent and foster groundbreaking innovation, Chengdu aims to make an even bigger difference on the world stage. Whether it’s creating the next animated blockbuster or launching the next big tech startup, Chengdu is a city to watch in the years to come.