China Races to Build AI Film Industry Through Government Subsidies and Cheap Computing Power
China is building a fast-emerging AI film industry with government subsidies, cheap computing power and rent waivers. Production costs for AI short dramas plunged from 5,000 yuan per minute to just a few hundred yuan in early 2026. But concerns grow over oversupply as 221,900 new AI shows launched on Douyin with only 1,055 gaining significant traction.