China Opens AI + Virtual-Production Lab to Build a Domestic Film-Tech Stack

China has launched an AI and virtual-production laboratory in Zhejiang to domesticise key film technologies, incubate pilot projects and set industry standards. The effort reflects a broader push for technological self-reliance and could lower costs, reshape labour in the film sector and create export opportunities, while raising governance and ethical challenges.

Side view of a woman wearing VR goggles in a purple-lit studio, highlighting modern technology.

Key Takeaways

  • 1The AI + Film Virtual Shooting Fusion Innovation Laboratory opened in Deqing, Zhejiang on 4 February, led by Zhejiang Film Bureau and the China Film Science and Technology Research Institute.
  • 2The lab will focus on domesticising core technologies, incubating pilot projects, building an AI-driven end-to-end virtual-production platform and drafting industry standards.
  • 3The initiative aligns with China’s wider push for tech self-reliance and aims to create a benchmark base for intelligent, virtualised shooting that can upgrade the domestic film industry.
  • 4Potential benefits include lower production costs, faster workflows and new exportable services; risks include job disruption, deepfake and IP concerns, and divergence from international standards.
  • 5Success depends on technological performance, industry partnerships, talent cultivation and how standards reconcile security, commercialisation and international interoperability.

Editor's
Desk

Strategic Analysis

The laboratory is a strategic intersection of culture and industrial policy. By sponsoring a domestically anchored stack for virtual production, Chinese authorities are attempting to translate a technical capability into both industrial competitiveness and soft-power capacity. In the short term the lab will accelerate adoption within China—reducing reliance on foreign engines and hardware and concentrating expertise in provincial hubs such as Zhejiang. Over the medium term it could spawn a Chinese ecosystem of middleware, tools and trained crews that competes regionally. But the project also exposes an ideological fault line: standards and governance driven by domestic priorities may limit interoperability with global pipelines and could entrench state oversight over synthetic media. Observers should watch the lab’s published standards, commercial spin-offs, and any partnerships with overseas firms; those signals will indicate whether the project aims primarily at import substitution and internal control, or at producing internationally competitive film-tech exports.

China Daily Brief Editorial
Strategic Insight
China Daily Brief

A new research and industrialisation hub for blending artificial intelligence with virtual film shooting was unveiled on 4 February in Deqing, Zhejiang. The “AI + Film Virtual Shooting Fusion Innovation Laboratory” is a joint initiative of the Zhejiang provincial film bureau and the China Film Science and Technology Research Institute. Its remit covers end-to-end work: domesticising key technologies, incubating pilot projects, building a full-process AI virtual-production platform, drafting industry standards and pursuing international exchanges.

The announcement positions the laboratory as a national benchmark intended to accelerate a transition to an “intelligent shooting” paradigm and to raise the technological quality of China’s film sector. Virtual production—the real-time fusion of live-action shooting with computer-generated environments—has become standard in big-budget filmmaking overseas, relying on LED volumes, game engines and advanced post-production pipelines. China’s lab aims to compress that stack into a domestically controllable architecture, from algorithms for AI-driven previsualisation and virtual actors to middleware for real-time compositing.

This project should be read in the context of two concurrent trends. First, global film-making is rapidly digitising: studios use real-time engines, machine learning and cloud services to shorten schedules and expand creative options. Second, Beijing has prioritised technological self-reliance, particularly in areas where foreign tools and standards dominate. By targeting key components for “国产化” (domestic production), the lab reflects a state-led effort to substitute foreign suppliers and to shape standards that favour Chinese vendors and regulatory expectations.

The industrial implications are tangible. A mature domestic virtual-production stack could lower the fixed costs of sophisticated effects, broadening access to smaller studios and enabling a faster, more iterative creative process. It could also foster new service exports—Chinese vendors supplying software, hardware and trained crews to regional markets. For incumbent visual-effects houses and freelancers, the shift promises new commercial opportunities but also disruption: roles in traditional post-production could be automated or relocated toward studios that adopt the new platform.

At the same time, the initiative raises governance and ethical questions. AI-assisted virtual production enables highly realistic synthetic performers and manipulated imagery, complicating issues of consent, copyright and misinformation. The state’s role in drafting industry standards and steering international cooperation will shape how these technologies are used and regulated. There is a trade-off: standards that facilitate domestic adoption and security may diverge from international norms, complicating cross-border collaboration.

The laboratory’s near-term priorities—pilot projects, platform prototyping and standards work—are pragmatic steps toward commercialisation. Success will hinge on forging industrial partners, attracting talent, and integrating the software and hardware layers into robust production workflows. If the lab produces interoperable tools and widely adopted standards, it could become a focal point for China’s attempt to translate digital-film know-how into cultural and economic leverage.

China’s experiment with an AI-driven virtual-production base is more than a local industrial initiative; it is a strategic move to shape the technological foundations of storytelling. Whether it becomes a global alternative to existing Western tools will depend on technical performance, openness to collaboration, and how regulators manage the ethical and intellectual-property issues that these systems inevitably raise.

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