Abstract: The cyberpunk genre started a new trend in Chinese anime movies after 2020, represented by the hugely commercially successful New Gods: Nezha Reborn (2021). Unlike Western cyberpunk, which focuses on portraying the future as a subcategory of science fiction, Chinese cyberpunk anime chooses to look back, fusing ancient myths with cyborgs, which is called myth-cyberpunk, reconstructing traditional Chinese culture, and broadening the boundaries of cyberpunk. This paper focuses on spatial construction and characterization in Chinese cyberpunk anime films. It traces the influence of Western cyberculture on Chinese animation and the uniqueness and local innovation of the Chinese side. Importantly, it examines the role of audience participation in the processes of cultural encoding and decoding, as proposed by Stuart Hall, to understand the dynamics behind the growing popularity of cyber animation in China. This paper aims to interpret the evolution of the cyberpunk style in Chinese animations, its reception, and its deeper societal motivations, offering insights into the unique allure of Chinese cyberpunk anime within the contemporary socio-cultural context.