City of God ends with a shooting involving the gangs led by Li’l Zé and Knockout Ned, with the outcome of the war proving that the cycle of violence that allowed Li’l Dice to grow into a ruthless drug dealer is bound to continue. The third act of City of God brings the movie full circle, as it goes back to the opening scene of Rocket getting himself between the police and Li’l Zé’s gang as a war between the drug dealer and Knockout Ned is about to begin.

https://screenrant.com/city-of-god-movie-ending-explained/