China Fuels Rush to Turn AI Video Into an Industry

…and robotics into globally competitive industries. The result is a fast-emerging industry of AI filmmakers, studios and streaming platforms in China seeking an early lead in production techniques and distribution. China has created the "best environment" for AI filmmakers with "cheap rent, living allowance and computing support," said Zhu, who also heads the AI-Generated Content (AIGC) department at China Wit Media in Shenzhen. Zhu runs his personal studio in Shenzhen from a shared workspace with the backing of the city government and Hong Kong…

…are drawn to AI by the low production costs. In the first half of 2026, the cost of producing AI short dramas plunged from 5,000 yuan ($747) per minute to just a few hundred yuan, according to state broadcaster CCTV. "A normal wedding scene might cost me 60,000 yuan to shoot conventionally," said Pan Xiaojun, a postgraduate film-directing student based in Hainan, southern China. "But with AI, I can bring the same surreal scene to life for just 1,400 yuan." Pan said subsidies and rent waivers from a local government in Hainan allowed him to push his computing costs down further. Other cities have also stepped up incentives. Shanghai in May introduced measures to…

…actors have raised concerns over the use of their likenesses in AI films, fuelling worries about copyright infringement and job losses for voice actors. Consumers also complain of plagiarism and a lack of originality. "Some people directly blend other people's original characters or dance clips into AI-generated content without any credit. I think that behaviour is completely unacceptable," said Wen, a 22-year-old AI content fan. The unexpected box-office success of the crudely animated, conventionally produced film, "Niu Lai," was seen by some as a backlash against AI content. China requires explicit…

…in China is surging, and even going abroad. Director Cao Yiwen premiered her AI-animated film during the World AI Film Festival in Cannes in April, and said she thought that China was taking the lead in the industry. "France and the rest of Europe are still watching and waiting to see whether China will introduce clear laws," she said. "We fell behind in the first two industrial revolutions, so perhaps this is the Third Industrial Revolution." ( Source : Reuters ) Next Story…