China's micro‑drama market, a vertical‑screen format of one‑to‑three‑minute episodes, has exploded to a $16.5 billion industry, driven by AI‑generated video. By March 2026, more than 50,000 AI‑native titles streamed on Douyin, each costing about one‑tenth of a traditional shoot. Local governments back the sector with subsidies up to two million yuan per drama, while the National Radio and Television Administration enforces a tiered review system. The model is now exporting abroad, generating $1.5 billion in overseas revenue and reshaping how content is produced at scale. Read more →