HAIKOU, China, June 11, 2026 /PRNewswire/ -- A news report from chinadaily.com.cn

Hainan province is doubling down on its digital economy, leveraging free trade port policies and its strategic geographic position to help Chinese digital enterprises go global. From artificial intelligence-powered short dramas to online games and digital literature, the tropical island is rapidly transforming into a launchpad for Chinese content reaching overseas markets.

In a landmark move, the Hainan AI Short Drama Going Global Industrial Base was recently established at the Hainan Free Trade Port Resort Software Community in Chengmai county. As the province's first industrial hub dedicated to using AI for producing and exporting Chinese short dramas, the base is set to become a key platform for Hainan to cultivate the digital culture sector and accelerate the high-quality development of cultural exports.

The timing is critical. The global micro-drama market saw explosive growth in 2025, reaching nearly $18 billion. China alone accounted for over $14 billion, or 77.8 percent of the global total, making it the new growth leader in digital content, according to a report jointly issued by the development research center of the National Radio and Television Administration, Future TV and DataEye.

Outside China, the international market hit $3.6 billion in 2025, with Chinese companies contributing about 90 percent. The top ten overseas short-drama platforms by in-app purchase revenue were all Chinese-backed, generating a combined $1.65 billion — 45.8 percent of the overseas market.

Chengmai is already home to the Hainan Free Trade Port Resort Software Community, one of the first national digital service export bases and the core hub for Hainan's digital culture industry. The community has gathered more than 2,000 digital culture-related enterprises, with a mature ecosystem for game exports.

These advantages are amplified by the free trade port's signature policies, including the "dual 15 percent" corporate and individual income tax caps, streamlined cross-border data flows and an open cultural industry environment — all of which make Hainan fertile ground for AI short drama ventures.

With its favorable policies, digital infrastructure and cultural assets, Hainan is steadily transforming from a tropical resort into a digital-era departure gate for Chinese stories heading overseas. The AI short drama base marks a significant step forward on that journey.