This chapter examines the transformation of Chinese animation from the late 1970s to the early 2010s, highlighting the impact of economic reform, marketization, and globalization. Following the Cultural Revolution, animators returned to the Shanghai Animation Film Studio and other institutions, reviving creativity through productions such as Nezha Conquers the Dragon King (1979). Television became a central platform for animation, expanding audiences and shaping a second golden age. However, as foreign content, especially Japanese anime and American cartoons, entered China, domestic studios faced new competition. Many animators moved into outsourcing for international companies, particularly in Shenzhen and other Special Economic Zones, altering the structure of the industry. The 1990s and 2000s brought technological modernization, with digital tools, 3D animation, and co-productions emerging as significant trends. The state increasingly treated animation as part of the creative industries, establishing subsidies, festivals, and industrial parks to encourage growth. Despite increased production and market expansion, challenges persisted, including limited originality, uneven quality, and dependence on service work for global studios. The chapter concludes that this period was both transitional and contradictory, combining remarkable industrial growth with structural fragilities that would shape the future of Chinese animation.