For those who grew up in China during the 1980s, domestic animated films from that era are precious and irreplaceable memories of their childhood.
　　A number of homegrown cartoons, such as Stories of Avanti, and Adventures of Shuke and Beita, were immensely popular and from 6:30 p.m. every evening, children across the country would sit glued to their televisions watching the latest installments of their favorite shows.
　　Despite this early success and their place in the hearts of a generation of children, China’s animation industry never lived up to its early promise. Many of the series were discontinued and the current generation of children has barely heard of well-known characters from the 1980s or 90s, such as Calabash Boys and Detective Black Cat, instead they are more familiar with Kung Fu Panda, The Incredibles or a host of other characters from Western animation studios.
　　In contrast with these animated superstars from overseas, young Chinese audiences failed to be impressed by the homegrown cartoons.
　　However, the last few years have seen some positive changes in the country’s ani- mation industry. According to the Investment Analysis and Perspective Report of the Chinese Animation Industry (2011-15) published by CIConsulting, an industry research institution, based in Shenzhen, south China’s Guangdong Province, in December 2011, China produced 78 animated feature films and 1,266 animated TV series with a total runtime of 707,614 minutes between 2006 and 2010, overtaking Japan as the largest producer of animation in the world.
　　Last year, the Chinese animation industry demonstrated stronger growth. Many cities, such as Beijing, Shanghai, Guangzhou and Hangzhou, have established animation industry bases and a mature industry chain including animation, comics, video games, toys and other derivative products, is being established. Animation is emerging as a new engine of Chinese economic growth and cultural development.
　　Despite the huge quantity, China’s animation industry is only just becoming established globally and its cartoons are a long way from having the influence of Japanese manga.
　　 Good effort
　　On January 12, 2012, the homegrown ani- mated feature Pleasant Goat and Big Big Wolf—Mission Incredible: Adventures on the Dragon’s Trail earned 20 million yuan ($3.16 million) on the first day of its release, breaking the box-office record for a domestic animated film and continuing the excellent performance of the Pleasant Goat and Big Big Wolf movie series at the box office. As of February 5, the latest installment of the Pleasant Goat series had earned 160 million yuan ($25.3 million) in the Chinese market.
　　The original version of the big screen blockbuster, the Pleasant Goat and Big Big Wolf TV series, has been the top rated animated TV series in China since it was launched by Creative Power Entertaining (CPE), based in Guangzhou, capital of Guangdong, in 2005. Pleasant Goat (or xi yangyang) has become one of the most popular cartoon images and licensed brands in China.
　　The series owes its popularity to a fresh animation style, engaging stories and appealing characters.
　　In addition, CPE has developed numerous derivative products from the series, everything from comic books and toys to costumes and stationery. Its commercial success has endured for seven years and demonstrates the enormous potential of the Chinese animation industry.
　　While progress has been made, a wide gap still exists between domestic animation and the leading Hollywood animated blockbusters.
　　Another Chinese animated feature The Dreams of Jinsha produced by Hangzhou C& L Production Co. Ltd., a private studio in Hangzhou, capital of east China’s Zhejiang Province, captured international attention last year with its use of sophisticated graphic design, excellent screenplay and a distinctive Chinese theme.
　　The film was screened at some wellknown international film festivals including the Festival de Cannes 2010 and the New York International Children’s Film Festival 2011. It also made the short list for nomina- tion to the 83rd Academy Award’s Best Animated Feature in 2011. Though the film failed to be nominated, it was the first time a Chinese animated film attracted attention at the Oscars.
　　


　　 Broad cooperation
　　 While China’s animation industry remained isolated through much of the 1980s and 90s, domestic animators are now paying more attention to international cooperation as a means of improving their quality. The vast potential of the Chinese market is also attracting more overseas animation companies.
　　A Chinese animated feature The Monkey King: Uproar in Heaven 3D, which combines classic Chinese animation and 3D technology, premiered at the New York International Children’s Film Festival 2012 which opened on March 2.
　　The original Monkey King: Uproar in Heaven is perhaps the best-known animated film in China. Premiering in 1965, the film was created by hand from over 130,000 ink drawings, and represented the height of China’s achievement in animation during the 1960s. The story is based on the first seven chapters of the Chinese classic Journey to the West as the Monkey King rebels against the Jade Emperor of Heaven.
　　To create the 3D version, the owner of the right to the original version, Shanghai Animation Film Studio (SAFS), worked with Technicolor, a U.S. studio specialized in animation technology, which helped with the film’s restoration, and conversion from 2D. Both the U.S. and Chinese teams worked on the project for over one year.
　　At the press conference launching the renovated movie on December 8 last year, Qian Jianping, the film producer, said, “In cooperation with Technicolor, we have polished the colors, applied 3D technologies and created more sound effects.”
　　Their newly founded joint venture, Technicolor-SFG Technology Co. Ltd., will work to bring advanced animation technologies to Chinese studios.
　　Technicolor isn’t the only Western animation company making forays into the Chinese market. The Walt Disney Co., the world’s largest animation entertainment group, also regards the Chinese mainland as an increas- ingly significant emerging market. In early 2005, Disney moved its Asia-Pacific headquarters from Hong Kong to Shanghai. Today Disney has built an integrated sales network across China. Many Chinese animation companies have also chosen to cooperate with Disney to develop and market their products.
　　CPE signed a three-year broadcasting license contract with Disney in 2010, through which the Pleasant Goat and Big Big Wolf series would be broadcast in 52 countries and territories in the Asia-Pacific region in more than 10 languages. It was the first time for a Chinese animated TV series to be distributed so extensively at home and abroad.
　　“Only by competing in overseas markets can Chinese animation brands achieve big success,” said Su Yongle, President of CPE.
　　On February 17, 2012, DreamWorks announced that it entered into agreement with three Chinese companies to form Oriental DreamWorks, which will engage in the development and production of high-quality original Chinese animated and live action content for distribution both within China and around the globe.
　　Although many people worry about the impact of international animation giants entering the Chinese market, others believe Chinese animation will benefit from international investment through cooperation and competition.
　　 Many challenges
　　 Despite the industry’s rapid growth and the fact that China is now the largest producer of animated cartoons in terms of quantity, the industry still struggles to generate sufficient revenue.
　　Sun Lijun, Dean of the School of Animation of Beijing Film Academy, said the output value of the U.S. animation industry exceeds $200 billion each year, but that of China was a meager$1.58 billion in 2011. Currently, Japan’s animation products take up 65 percent of the total market share in the world.
　　Qian pointed out several challenges that hinder the development of Chinese animation industry. One is the lack of good ideas and stories, and another is the relatively backward technology.
　　“Advanced technology enables Hollywood studios to fully realize the producers’ ideas. So we need to master new technologies through cooperation,” he said.
　　“Crucially, the animation industry must establish its own distinct identity rather than copying American or Japanese styles. We need to establish our own features and brands,” Qian added.
　　Furthermore, the animation industry needs to resolve the investment problem. Due to the slender income from box office sales and copyright licenses, many animation studios don’t receive the investment they need to produce better works.
　　Despite all these challenges, the Chinese animation industry is embarking on a period of rapid growth and now policy incentives are being introduced to accelerate the industry’s development. In the eyes of animators, the animation industry is on the cusp of a new golden age and it’s only a matter of time before the industry tackles the above-mentioned challenges and emerges as a truly global force.