Zhu Zhili, a Chinese AI director, discusses an AI-generated video with a colleague at the office of China Wit Media, a film and television production company, in Shenzhen, Guangdong province, China. Photo: Reuters <\/p>\n
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 \u200bof Shenzhen with its vast tech ecosystem.<\/p>\n
This year, AI filmmaker Zhu said he has fielded calls from officials in cities and industrial parks across China, all with the same pitch: bring\u00a0your AI film business here.<\/p>\n
“I am approached every day by a range of cities, from major metropolitan areas to smaller localities,” Zhu said, “hoping we can establish either technology or the company there.”<\/p>\n
Those appeals reflect a major push by China to embed artificial intelligence into every corner of the economy \u2013 including the latest movies showing at cinemas.<\/p>\n
Local governments have responded by promising to build tech clusters and offering subsidies to AI filmmakers and startups. That is straight out of a familiar industrial policy \u200bplaybook, treating AI-generated content the way China built electric vehicles, solar panels and robotics into globally competitive industries.<\/p>\n
The result is a fast-emerging industry of AI filmmakers, studios and streaming platforms in China \u200bseeking an early lead in production techniques and distribution.<\/p>\n
China has created the “best environment” for AI filmmakers with “cheap rent, living allowance and computing support,” said Zhu, who \u2060also heads the AI-Generated Content (AIGC) department at China Wit Media in Shenzhen.<\/p>\n
Zhu runs his personal studio in Shenzhen from a shared workspace with the backing of the city government and Hong Kong Polytechnic University.<\/p>\n
Filmmakers drawn to AI’s low production cost\u00a0<\/strong><\/p>\n While China’s all-out push for AI in film has been welcomed by filmmakers like Zhu, the industry faces growing risks familiar to other sectors showered with state support. As companies step up production \u200bof goods like cars and consumer products, domestic demand remains constrained, driving down prices in what many see as a race to the bottom.<\/p>\n There are signs that AI video content may already be approaching overcapacity. In the first half of the year, 221,900 new AI shows were launched on Douyin, the Chinese version of TikTok, but only 1,055 drew more than 100 million views, a typical benchmark of success, according to DataEye.<\/em><\/p>\n Filmmakers say they are drawn to AI by \u200bthe low production costs.<\/p>\n 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.<\/p>\n