News Summary

• Local governments across China are competing to attract AI filmmakers with subsidised rent, living allowances and cheap computing power.
• In May, Shanghai started giving computing capacity and hosting AI models to micro-drama producers.
• Beijing’s Huairou district, a centre of the Chinese film industry, also hands out vouchers that cut computing bills for AI short dramas.
• Shenzhen, for its part, offers technical support and cheaper rent to AI film talent.
• Production costs have dropped fast.
• According to state broadcaster CCTV, making a minute of AI short drama cost 5,000 yuan at the start of 2026 and only a few hundred yuan by mid-year.