China fuels rush to turn AI video into an industry
China is aggressively promoting the development of an AI film industry by offering subsidies and tech clusters to startups in cities like Shenzhen. While this has spurred rapid growth, experts warn that the sector may face overcapacity and a race to the bottom due to limited domestic demand.
Why it matters
It illustrates China's state-led industrial policy approach to emerging technologies and the potential economic risks of such strategies.
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.
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 your AI film business here.
“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.”
Those appeals reflect a major push by China to embed artificial intelligence into every corner of the economy – including the latest movies showing at cinemas.
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