China proposes tiered licensing and AI labeling for micro-short dramas

This framework shifts micro-short dramas from a loosely governed niche into a formalized regulatory tier comparable to traditional broadcast television. By mandating licenses based on investment size, the NRTA is institutionalizing oversight of a sector that now rivals theatrical box office revenue in scale. For developers, the restriction on 'addictive' algorithms poses a technical challenge to the high-frequency, cliffhanger-driven engagement models that define the genre. Expect these standards to serve as a blueprint for the global operations of Chinese platforms like ReelShort and DramaBox as they navigate increasing international scrutiny over content safety and AI transparency. Current producers should watch for the specific budget thresholds that trigger provincial versus platform-led review.

The draft measures follow an explosive growth period where China's micro-short drama market reached 50.4 billion yuan (approximately $7 billion) in 2024, surpassing the nation's annual film box office revenue for the first time, per Sixth Tone in February 2025. By mid-2026, the sector's market scale touched 100 billion yuan, serving nearly 700 million viewers with over 33,000 serialized titles, according to China Daily reporting in June 2026. This rapid expansion has increasingly attracted government scrutiny regarding content quality and consumer protection.

In early June 2026, the NRTA launched a two-month nationwide campaign to eliminate 'harmful' content, specifically targeting themes of extreme violence, 'money worship,' and distorted social values, per the Global Times. This administrative cleanup coincided with major platforms like WeChat and Douyin removing thousands of episodes that failed to meet updated internal compliance standards. Regulators are particularly focused on protecting elderly users and minors from predatory payment loops and 'addictive' narrative structures common in vertical-video dramas.

Beyond domestic borders, Chinese micro-short drama apps have become a significant cultural export. As of March 2025, there were 237 Chinese-owned short drama apps operating overseas, generating a total of $3.24 billion in revenue for 2025, per the NRTA's development research center. Leading platforms such as ReelShort and DramaBox have successfully localized content for Western audiences by using local actors and scripts while maintaining the high-intensity pacing developed in the Chinese market. The new requirement for labeling AI content and managing algorithmic addiction reflects a broader Chinese policy shift toward ethical AI use that could influence how these platforms operate in North American and European markets.