Founding of Shanghai Arts and Film Studio (1950 - 1965)
In February 1950 the northeast group combined with other divisions to become the predecessor of Shanghai Animation Film Studio. The Wan brothers, Central Academy of Fine Arts, the Art Institute of Suzhou and many other big name artists would all be concentrated in this studio for the first time. Among the talent is Japanese animator Tadahito Mochinaga who spent time in Shanghai creating Thank You, Kitty. Three years later he departed for Japan, becoming possibly the only artist to have worked in both Chinese and Japanese industry in the era.
By 1956 the Wan brothers have created the first colored animation of notable length titled Why is the Crow Black-Coated, which became the first Chinese animation recognized internationally.
In April 1957 the central government began sponsoring the studio making it the nation's first and official animation factory. From the technology standpoint, China's animation was still relatively on pace with the rest of the world. In 1958 the Wan brothers created a new animation film technique based on the folk art cut-paper animation, which was demonstrated in Pigsy Eats Watermelon. At the same time another technique called origami animation was also developed by Yu Zheguang in 1960, in the film A Clever Duckling.
Also in 1960 the first set of animation film exhibitions were held in 6 major cities including Shanghai and Beijing, followed by exhibitions in Hong Kong in 1962 and Macau in 1963.
The Wan brothers received the most recognition for their film Havoc in Heaven, since it was well known among ordinary citizens. The development spanned 4 years from 1961 to 1964. It ran for nearly 2 hours pushing the technology to the limit with some of the most vivid colors ever put to the screen.
Cultural Revolution interference (1966-1976)
Animations were considered technological marvels up until the cultural revolution kicked into full gear in 1967.
The revolution was widely known for the red guard destruction crusades that destroyed artifacts, antiques, paintings, books and anything of conflicting value. Some of the artists were humiliated, forced to become farmers in the countryside, accept education or sent to prison. Some of the famous artists in the film and literature industry would rather commit suicide than to be humiliated. Most of the animators were not allowed to draw and forced to do labor work. The persecutions would grow exponentially worse from 1966 to 1972, labeling the period "catastrophic" for the industry.