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China economy
OpinionChina Opinion
OpinionHugh Harsono
Why China is seriously cultivating AI entertainment
With rules and support, policymakers appear to be positioning AI and its entertainment nexus as the foundation for a new cultural economy
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Hugh Harsono
Hugh Harsono writes regularly for multiple publications about cyberspace, economics, foreign affairs and technology.
Published: 5:30am, 14 Jul 2026
China’s artificial intelligence ambitions tend to be depicted in the news as predominantly related to defence, large language models and semiconductors. But one emerging use case for AI revolves around a market projected to grow to US$441 billion by 2035: China’s entertainment market
Just last week, Chinese regulators announced policies encouraging cinemas to reinvent themselves with AI-powered experiences. Simultaneously, Chinese content creators have embraced AI to hasten content ideation, creation and development. Together, these developments point to a strong projection of growth for AI in Chinese entertainment. Chinese policymakers appear to be positioning AI and its entertainment nexus as the foundation for a new cultural economy.
China Film Administration (CFA) and the State Administration for Market Regulation (SAMR) have jointly issued guidelines encouraging cinemas to diversify beyond film screenings, specifically supporting the introduction of AI agents to create hubs for “trendy cultural consumption”. This policy aims to move the industry from a traditional ticket-sales model to an all-inclusive, AI-driven consumer experience encompassing retail, gaming, karaoke and more.
The move reflects a desire to bring Chinese consumers back to the box office, particularly as cinema revenues continue to slump amid a rise in the consumption of online, smartphone-based content.
In a nod to these consumer preferences, the proposed AI-enabled multipurpose venues suggest that both the CFA and SAMR are seeking to enable more personalised recommendations, facilitate multifaceted commerce and generally create immersive entertainment experiences that tie to the cinematic ecosystem
Beyond this, the guidance highlights China’s broader economic strategy of promoting growth through domestic consumption. From this point of view, the entertainment industry is set to be another sector where AI can increase engagement, spending and efficiency all at once.
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