- Primary Subject: Shang-Chi 2
- Key Update: Director Destin Daniel Cretton confirmed the sequel remains in active development, attributing its long delay to pandemic-era theater closures and industry-wide restructuring.
- Status: Confirmed
- Last Verified: June 16, 2026
- Quick Answer: Yes, Shang-Chi 2 is still happening. Director Destin Daniel Cretton confirmed development is active, though industry shifts and his work on Spider-Man 4 delayed production.
Director Destin Daniel Cretton offers a major update on the highly anticipated Shang-Chi 2 after its long-awaited release.
It has been five years since Shang-Chi and the Legend of the Ten Rings hit theaters. And while one of the best films in the Multiverse Saga was officially announced to have a sequel, nothing has materialized yet.
So, does this new tease mean fans will finally see Simu Liu back in his second Shang-Chi movie?
Is Shang-Chi 2 Still in Development?
Shang-Chi 2's development began in December 2021 with Destin Daniel Cretton returning to write and direct.
Five years later, the filmmaker confirmed that the sequel is very much still in development and addressed the reason for the delay.
“We are developing a second one,” he said on Deadline’s Crew Call podcast. “You know, what’s going on is what went on with the entire industry since that, you know, that movie came out, like it was successful, but it actually came out weirdly.”
Cretton admitted that the first movie became successful when “a new wave of COVID was hitting.”
“So, it was still successful, but it was also, I think many countries were completely shut down to theaters at the time,” he continued. “So, and you know, after that, there were just crazy changes all over the place. So, it was, it’s just a result of the industry.”
True enough, there have been major changes in the industry since COVID happened, as well as various shifts and developments across the MCU as a whole.
As a number of movies and series have been released since Shang-Chi and the Legend of the Ten Rings, it will be interesting to see how Shang-Chi 2 will play out and connect to earlier stories.
What to Expect from Shang-Chi 2?
While details about Shang-Chi 2 remain under wraps, rumors suggest it may feature the clandestine organization Atlas and secret agent Jimmy Woo.
In the comics, Jimmy’s parents sent him to America to escape his fate. He eventually gains control of Atlas and redirects it toward altruistic goals, later forming the Agents of Atlas.
According to TCC’s Alex Perez, this would serve as the backbone of Shang-Chi 2’s plot. The power vacuum left by Wenwu’s death and the fate of the Ten Rings would set up the rise of Atlas, bringing Shang-Chi and his sister into the story.
“In addition, sources have told us that Agent Jimmy Woo would be involved as he would be after the ‘mysterious Golden Claw’,” he said. “Together with Shang-Chi, he would uncover the conspiracy behind the Atlas Foundation, as the Golden Claw, Golden Warriors, and the Atlas Foundation would all ultimately be connected.”
However, fans are advised to take this rumor with a grain of salt, as nothing has been confirmed yet.
Shang-Chi and the Legend of the Ten Rings is available to stream on Disney+.
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