Hello, I am Evelyn, writing to you from Beijing. Welcome to the latest edition of The China Connection – a brief snapshot of what I’m seeing and hearing from local businesses.
Today, I’m diving into Alibaba’s latest effort to capture the global animation market, just as Hollywood works hard to capture Chinese movie lovers. What does a Chinese executive producer see as the path to success?
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big story
How does a Chinese animation studio run? alibaba Decide which stories to tell?
The answer starts with Internet user data.
Instead of focusing on “what do we like”, it’s more about what do they like? Huiyu Xu, creator of Alibaba’s video platform Youku, said, referring to the app. about 170 million users.
Said out loud, it’s quite different desire to explore a concept Directors in Hollywood can often start with this.
I spoke to Xu, the executive producer of Youku’s popular “Cang Yuan Tu” animated series, in Alibaba’s spacious new Beijing offices with restaurants, coffee shops and a movie theater.
The team behind Youku’s “Cang Yuan Tu” animated series debuted the third season in Beijing on March 12, 2026.
CNBC | Evelyn Cheng
“Cang Yuan Tu” is a fictional martial arts story with its roots in a 2019 online novel that received 5 million reader recommendations in just over a year – the kind of data that even got rival platform Tencent Video interested in adapting an earlier novel by the same author. Since season one of “Cang Yuan Tu” aired in 2023, Youku’s animated series now has more than 9.9 million followers in China.
This makes it Alibaba’s most popular show ever Netflix-like video platform, which offers a mix of domestic and foreign movies along with TV shows for 25 yuan ($3.62) per month. A movie version of “Cang Yuan Tu” is planned for summer 2027.
Xu said that in order to keep up with the ever-increasing demands of viewers, Youku must continue to raise the production quality of the series, from the level of detail in its animation to hiring better artists to paint the watercolor paintings seen in the show.
“Compared to Disney animated films, there is not much difference compared to three years ago,” Xu said in Mandarin Chinese, translated by CNBC, when I met him earlier this month. “But for us, it’s like night and day.”
Despite censorship and restrictions on how many American films can hit theaters each year, Hollywood still has its eye on China. Disney’s 2025 “Zootopia 2” animated film could thank you China for about a third With its $1.87 billion global box office haul, it became highest grossing hollywood movie All the time in the country.
Meanwhile, New York-based film production and distribution company A24 is also bringing its highest-grossing film to date, “Marty Supreme,” to China this month.
Actor Timothée Chalamet, right, and American filmmaker Joshua Safdie attend the premiere of the film “Marty Supreme” in Beijing, China on March 10, 2026.
Visual China Group | getty images
To promote the story of a fictional table tennis star, lead actor Timothée Chalamet came to China for the premiere in Beijing. He even played ping-pong with locals and served traditional street food from a cart – all documented with his new celebrity account on social media platform Xiaohongshu. Writer-director Josh Safdie also joined Chalamet in Beijing.
However, according to Chinese online ticketing site Maoyan, the R-rated film’s opening weekend box office earnings were just over 3 million yuan ($440,000).
moves out of china
On the other hand, Youku connects to other Chinese animation and entertainment companies With ambitions outside China.
According to Youku, “Kang Yuan Tu” is gaining popularity in Thailand and Vietnam. The company also operates an international streaming platform in addition to a YouTube channel. 1.27 million subscribers For animation alone. Anyone who wants to watch full episodes with subtitles will have to pay $3.99 per month.
In English, the official translation of “Cang Yuan Tu” is “The Demon Hunter”, but it has no relation to the popular Netflix show “Kpop Demon Hunters”.
Xu said Youku is planning other animated content this year with urban and futuristic settings that have less obvious traditional Chinese elements. But the company is not immune to the impact of artificial intelligence, something Xu expects to happen in the next year or two that will impact special effects teams more than smaller teams handling creative direction.
in America, A24 has reportedly launched an AI lab With money tied to OpenAI. Film company from which departure Traditional Hollywood Marketing Strategy To work closely with directors, it also quietly opened its first movie merchandise store in mainland China inside Alibaba’s new Beijing offices.
A24 did not respond to a request for comment.
The question of what connects with China’s billions of consumers extends beyond cultural and technological boundaries. When I asked Xu why the third season of “Kang Yuan Tu” seemed to focus on a mythical phoenix, he hinted at what the team wanted to convey.
He said, “Just because there is war, it does not mean we should stop living. No matter what happens outside, one’s heart must remain bright.”
need to know
America-China. Both sides arrived”new consensusDespite this, Trump delayed a visit to Beijing, originally scheduled for late March, according to China’s commerce ministry.
Alibaba cuts jobs The company revealed a 34% decline in headcount last year amid a shift to focus on AI. Tencent Its workforce saw modest growth in earnings last year.
Nvidia intrigue. US prosecutors have charged Super Micro Computer employees with trafficking NVIDIA Chips to China.
is coming
24 – 27 March: China’s Boao Forum for Asia
March 25: To PDD Holdings release income
March 25 – 29: China’s Zhongguancun State-Organized Technical Forum in Beijing
March 27: China’s industrial profits for January and February
