It has already been 80 years ever since the appearance of the first Chinese animation film - "Danao Huashi," or "Mischief-making in the Art Gallery" in 1926. 

The famous "Monkey King," produced by the Shanghai Animation Film Studio from 1961 to 1964, is the world's most popular Chinese animation film. By 1984, the cartoon had been shown in 44 countries and regions. However, as China gradually opened its market, the influx of foreign animation films disrupted the domestic industry which was not accustomed to competition. 

Chinese audiences preferred foreign animation and, as a result, very few quality domestic animation films were produced during the 1990s. That was especially so after 1993 when China opened its animation film industry to the outside world. 

Problems for the animation industry arose during China's transition from a planned economy to a market economy. The former China Film Distribution and Exhibition Corp bought all the films and broadcast them, regardless of the quality. Filmmakers didn't have to be competitive - and their films definitely could not compete. 

Nowadays, since China's opening up, animation films must compete with foreign animation films on an equal footing. Today the industry faces problems of finding good scripts and nurturing young talents. It usually costs 10,000 yuan (US$1,279) to produce one minute's film, but even the highest offer, usually from China Central Television, is only several hundred yuan for one minute. That means those who rely only on animation for a living cannot survive, discouraging many who want to make it their profession.
        
The bigger problem is lack of good animation plays and the need to build an entire industrial chain of animation films.  Statistics show that in general a successful cartoon makes two-thirds of its money through cartoon-derivative products rather than screening of the film itself. 

But of course, it is quality that matters. Hopefully, with the support of the government and efforts of older and younger animators, the future of the film industry will be promising.

Source:佚名