Chinese cities are courting AI film studios with subsidies, cheap rent and computing support. But signs of possible oversupply are emerging: 221,900 AI shows launched on Douyin in the first half of 2026, and only 1,055 drew more than 100 million views, DataEye says.
State broadcaster CCTV reported that AI short-drama production costs fell in the first half of 2026 from 5,000 yuan ($747) per minute to a few hundred yuan. Film-directing student Pan Xiaojun said a wedding scene that would cost 60,000 yuan to shoot conventionally cost 1,400 yuan with AI; subsidies and rent waivers in Hainan further reduced his computing costs. Shanghai is offering computing power and cloud AI models, while Beijing has a 260 million yuan audiovisual-technology fund.
China's National Film Administration granted a public-screening licence to “Sanxingdui: Future Memories,” the first AI film from a major Chinese studio approved for theatrical release in the country. Producer Bona Film Group said it is due out this year. Actors have raised concerns about AI use of their likenesses, amid wider worries about copyright infringement and voice-actor job losses; consumers have complained of plagiarism and lack of originality. China requires explicit labelling for AI-generated content but has yet to establish clear copyright rules for it.
