China's AI film boom sparks race for talent, studios and subsidies
BEIJING: When Zhu Zhili was looking for a base to set up an artificial intelligence film studio in China two years ago, there was just one clear choice: the southern city of Shenzhen with its vast tech ecosystem.
Beijing, China is witnessing an AI film boom, prompting a race for talent, studios, and subsidies. Zhu Zhili, an AI filmmaker, no longer has a single choice for establishing his studio; officials from various cities and industrial parks across China now pitch him offers to set up their AI film businesses. Local governments are promising tech clusters and subsidies for AI filmmakers and startups.
This mirrors a familiar industrial policy approach, integrating AI-generated content into the economy, much like China's push for electric vehicles, solar panels, and robotics. The result is a rapidly growing industry of AI filmmakers, studios, and streaming platforms in China, all striving for an early lead in production techniques and distribution.
China offers an ideal environment for AI filmmakers, with low rent, living allowances, and computing support. Zhu also heads the AI-Generated Content (AIGC) department at China Wit Media in Shenzhen. Filmmakers are attracted to AI's low production costs. AI short dramas' production costs dropped from 5,000 yuan per minute to a few hundred yuan in the first half of 2026, according to CCTV.
Subsidies and rent waivers from local governments have further reduced costs. Other cities like Shanghai, Beijing, and Shenzhen have also introduced incentives for AI film production. Shanghai offers computing power and cloud-based AI models, while Beijing provides a 260 million yuan fund and vouchers to reduce computing costs for short AI dramas.
Shenzhen is also attracting AI film talent with technical support for video production, visual effects, and content generation, as well as subsidized rent. Major streaming platform iQIYI is heavily investing in AI content. However, the industry faces risks such as overcapacity and a backlash from actors concerned about copyright infringement and job losses.
The National Film Administration has approved the public screening of China's first AI film, "Sanxingdui: Future Memories," but there is no clear copyright rule for AI-generated content in China.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
