In 2008, the central government earmarked 7 million yuan ($113 million) to support the development of original animated works. One year later, the financial input had doubled, from which over 100 projects benefited.

As a result, China has surpassed the United States, Japan and the Republic of Korea to become the largest animation producer, with annual output of animated works totaling about 220,530 minutes, according to the 2011 Chinese Animation Industry Development Report, China's first authoritative report on this sector.

But quantity is not everything. Statistics published by iQiyi.com, one of China's leading video websites, for the first three months of 2013 suggests that animations tailored for kids aged seven-13 accounted for almost half of the overall market, while those fitting other ages account only one-fourth.

"Compared with Western countries and Japan, China's animation has a less extensive audience for it is targeting a lower age, which is a congenital deficiency for the industry's wholesome development," said Zhang Yiwu, a professor with Peking University.

Zhang, however, applauded the effort shown in "Kuiba 2," saying it represents innovation in Chinese anime in that it features a fantasy worldview that is complex for children while having elements amusing younger ages.