What's Going On With Shang-Chi 2 After New Spider-Man 4 Update?

The MCU’s Spider-Man 4 has just received a huge update, though not without raising doubts about Shang-Chi 2. As two movies on the list of upcoming Marvel projects, Spider-Man 4 and Shang-Chi 2 are receiving a lot of attention. This was to be expected, given the success of the Tom Holland Spider-Man trilogy and the first installment of the other MCU sub-franchise, Shang-Chi and the Legend of the Ten Rings. Despite this, updates about Shang-Chi 2 have been relatively rare since the first film’s release in September 2021.

Where Spider-Man 4‘s MCU story is concerned, however, updates have been regular. It is no secret that Spider-Man is far and above the most popular superhero in Marvel’s pantheon, as evidenced by the character’s success in not only the MCU but also in other franchises like Sony’s Spider-Man Universe and Sony Animation’s Spider-Verse projects. With upcoming Spider-Man movies in the works from multiple studios, Marvel Studios did not intend to be left behind. With a major update about Spider-Man 4, though, comes somewhat of an uncertain future for Shang-Chi 2.

Shang-Chi 2 Is Reportedly In Development

Shang-Chi Has Been Slated To Return To The MCU

Since the ending of Shang-Chi and the Legend of the Ten Rings, many have been wondering why such little news has been given about the sequel. A big factor as to why the absence of updates is so shocking is that Shang-Chi 2 was confirmed to be in development in December 2021, only three months after the first film’s release. It was confirmed that Destin Daniel Cretton, writer and director of Shang-Chi and the Legend of the Ten Rings, was returning to write and direct the sequel, with lead star Simu Liu confirmed to reprise his role a month later.

However, in the three years since then, no updates of any substance have been provided. Cretton was confirmed to be directing what was planned to be Avengers: The Kang Dynasty, though he stepped down in November 2023 to focus on other MCU projects he was developing, namely the Wonder Man series and Shang-Chi 2. Actor Simu Liu gave a Shang-Chi 2 update in August 2024, confirming that the film is still in development but that a lot of the decisions on revealing news are above his pay grade.

Concerning why news of a Shang-Chi sequel is so coveted, the first film was incredibly well received. Not only did it receive rave reviews from critics and fans alike, but it was a box office success even amid dwindling financial success due to COVID-19. The film grossed $432 million worldwide against a $150-200 million budget. Usually, this would not be classed as a roaring success, but the pandemic-ravaged industry saw Shang-Chi ranked as the ninth-highest-grossing movie of the year.

Shang-Chi Director Is Now Set To Helm Marvel & Sony’s Spider-Man 4

Destin Daniel Cretton Is Taking A Stab At Another Pocket Of The MCU

Although Liu’s update about Shang-Chi 2 was exciting, it came weeks before another MCU announcement was made that seemingly harms the project. In September 2024, it was disclosed that Tom Holland’s Spider-Man 4 had found its director. That director is none other than Cretton, the filmmaker who was last said to be working on Shang-Chi 2. As it turns out, Cretton will be handling the Web-Slinger’s next adventure which is reported to be fast-tracked for an early 2025 production start.

Alongside Cretton, writers Erik Sommers and Chris McKenna will return to pen Spider-Man 4 after writing all three movies in the MCU’s Homecoming trilogy. With production set to start in the early months of 2025, it seems as though Cretton is locked into the Marvel machine for at least another few years. Naturally, this raises questions about Shang-Chi 2, specifically when, or if, the film will be made.

How Spider-Man 4 Affects Shang-Chi 2

Shang-Chi 2 May Be Put On Marvel’s Backburner

With Destin Daniel Cretton now helming Spider-Man 4, it seems as if Shang-Chi 2 is a lower priority in the grander scheme of Marvel Studios’ plans. This could be a reflection of Disney’s new plan. At the beginning of February 2024, Disney CEO Bob Iger gave an MCU update, explaining that the franchise would reduce its output while focusing on big-name franchises as opposed to smaller, lesser-known properties. While it is not confirmed that this is the reason for Shang-Chi 2‘s delay, it could be used as a reason to explain Cretton’s switch to a massive franchise like Spider-Man.

As far as the earlier reports about Shang-Chi 2 are concerned, Cretton is still technically attached to write and direct the film. Until a replacement director is confirmed, if one is at all, it has to be assumed that Cretton will begin production on Shang-Chi 2 after Spider-Man 4‘s production is complete. With Spider-Man 4 set to start filming in 2025, it can be assumed the film is set for a late 2026/early 2027 release date, meaning Shang-Chi 2 may not come until 2029 or 2030 if Cretton is still hoping to direct.

Shang-Chi 2 Might Be A Victim Of Marvel’s Multiverse Villain Change

The Multiverse Saga Was The Subject Of Massive Change In 2024

Another element that could have seen Shang-Chi 2 take a backseat is the massive changes made to the MCU’s Multiverse Saga. At San Diego Comic-Con 2024, Kevin Feige took to the stage to give updates about 2025’s movies, as well as the two Avengers movies that have been no strangers to troubled productions. In light of Jonathan Majors’ assault charges, the MCU decided to pivot completely away from Kang the Conqueror as a multiversal villain and introduce Doctor Doom as Phase 6’s main villain, played by the returning Robert Downey Jr.

While this was expected since Majors’ charges came to light, it has drastically altered the storyline being set up for the Multiverse Saga. In Shang-Chi and the Ten Rings’ post-credit scene, it was revealed that the titular rings were emitting a beacon to an unknown source, thought to be Kang the Conqueror whose Quantum Realm empire used similarly designed technology. Since then, it has been revealed that Shang-Chi was set to appear in a lead role in Avengers 5, seemingly confirming this theory to be true.

However, now that Doctor Doom is confirmed as the main villain of Avengers: Doomsday and Avengers: Secret Wars, Shang-Chi’s planned arc could be affected. It may now be the case that Avengers 5‘s story will not tie to Shang-Chi as closely as it was initially supposed to, explaining Marvel reshuffling its priorities. Evidently, Spider-Man 4 has moved up in this regard, while a sequel to Shang-Chi and the Legend of the Ten Rings remains as elusive as ever.