Stories
China Fuels AI Video Boom: From Local Studios to Global Ambitions
- •China is aggressively pushing to integrate AI into its economy, including the film industry, with local governments offering subsidies and building tech clusters to attract AI filmmakers and startups.
- •Filmmakers like Zhu Zhili are drawn to AI for its significantly lower production costs, with AI short drama costs plummeting from 5,000 yuan to a few hundred yuan per minute.
- •Cities like Shanghai, Beijing, and Shenzhen are providing incentives such as computing power, cloud-based AI models, rent waivers, and technical support to foster AI film production and talent.
- •Despite the rapid growth and a major Chinese studio's AI film receiving regulatory approval for theatrical release, the industry faces challenges including potential overcapacity, plagiarism concerns, and copyright issues.
- •Chinese AI film content is surging domestically and gaining international attention, with some experts believing China is leading the "Third Industrial Revolution" in this sector.
Key Questions Answered
Local governments across China are promoting the AI film industry by establishing tech clusters, offering subsidies, providing cheap rent, living allowances, and computing support. For instance, Shanghai offers computing power and cloud-based AI models to cut costs, Beijing provides vouchers and a 260 million yuan fund, and Shenzhen offers technical support alongside subsidized rent.
The cost of producing AI short dramas in China plunged from 5,000 yuan ($747) per minute in the first half of 2026 to just a few hundred yuan. Filmmakers note that scenes which would cost tens of thousands of yuan to shoot conventionally can now be produced using AI for a fraction of the price.
The 90-minute science-fiction epic "Sanxingdui: Future Memories" has been granted a public-screening licence by the National Film Administration. Produced by Bona Film Group, it is the first AI film produced by a major Chinese studio to receive regulatory approval for a theatrical release in China.
