Are AI-generated short dramas a waste of computing power? China’s AI strategy tells a different story

From the report

China’s growing use of artificial intelligence (AI) in short dramas, video production, e-commerce and digital marketing has sparked debate over whether the country is directing valuable computing resources toward entertainment instead of technological innovation. Critics contrast China’s AI-driven content industry with the United States’ emphasis on software development and enterprise automation, portraying the difference as evidence that Washington is building the future while Beijing is chasing entertainment. However, this narrative overlooks the economic value of practical AI applications and relies on statistics whose reliability remains questionable.

As China advances its high-quality development agenda amid intensifying international competition, the central question is not how many computing resources AI consumes, but whether those resources generate meaningful economic and technological benefits.

The controversy gained attention after figures circulated online claiming that short dramas and video generation account for 55 percent of China’s domestic AI token consumption, while e-commerce and marketing represent 24 percent and software development accounts for 15 percent. These numbers were contrasted with a claim that 58 percent of US token consumption goes toward coding and enterprise automation.