This book offers a comprehensive and up-to-date analysis of the Chinese animation industry, tracing its evolution from the magic lanterns of the 19th century to the cutting-edge AI-powered productions of today. It provides readers with an unparalleled look into the fascinating world of Chinese animation, exploring its rich history, cultural significance, and economic impact. Through extensive research, including original interviews with key industry figures and policymakers, this volume illuminates the complex interplay between artistic creation, technological innovation, market forces, and government policies that have shaped the trajectory of animation in China.The journey begins with the early origins of moving images in China, exploring how traditional storytelling methods and visual arts laid the groundwork for the emergence of animation. The author describes the pioneering work of the Wan brothers, whose groundbreaking animations in the 1920s and 1930s set the stage for the development of a uniquely Chinese animation aesthetic. The book then delves into the golden age of Chinese animation during the socialist era, examining how the state-supported Shanghai Animation Film Studio produced internationally acclaimed works that blended traditional Chinese art forms with modern animation techniques. As China entered the reform and opening-up period, the animation industry underwent significant transformations. The book analyzes how the commercialization and globalization of the 1980s and 1990s reshaped the landscape of Chinese animation, bringing both new opportunities and challenges. Furthermore, it examines the influx of foreign animations, particularly from Japan and the United States, and how this influenced domestic production and audience preferences.