Chapter Dive
China’s XR Development 101: How Chinese Tech Giants are Navigating Towards the Metaverse
Chinese tech giants are massively investing in virtual reality and in the technologies that are building up the Chinese metaverse.
Published
3 years agoon
By
Jialing Xie
Virtual, Augmented, and Mixed Reality technologies are blurring the lines between the real and digital worlds and are powering the metaverse. Chinese tech giants are at the forefront of the latest developments on the mainland market, including XR, that are making the metaverse possible. Time for a round-up of what China’s key players are focusing on and which virtual initiatives are already live.
2021 is the year in which the concept of ‘metaverse’ has blossomed. In March of last year, the hugely successful online multiplayer game and game creation system Roblox went public with a market value of over $41 billion at the time, earning its reputation as the world’s first metaverse IPO.
Following the release of the 2021 sci-fi comedy Free Guy – which is set in a fictional metaverse-like video game, – and Facebook’s rebranding to ‘Meta’ last fall, ‘metaverse’ became one of the hottest buzzwords on the internet.
The term metaverse is actually decades old. In the 1981 novel True Names, the American computer scientist Vernor Steffen Vinge already envisioned a virtual world that could be accessed through a brain-computer interface, and the term ‘metaverse’ was first mentioned in the 1992 Snow Crash science fiction novel by Neal Stephenson.
Now, 5G, AI, VR, Blockchain, 3D modeling, and other new technologies converged on the concept of the metaverse industry are seeing an explosive growth in China.
At the recent 20th Party Congress, it became clear once again that the digital economy is key in China’s long-term strategies, with Chinese leader Xi Jinping promoting digitalization as one of the new “engines” of future growth.
About Metaverse (元宇宙) in China
In Chinese, ‘metaverse’ is referred to as yuányǔzhòu (元宇宙), which is a literal translation of ‘meta-verse’ – meaning ‘transcending universe’ (超越宇宙). Chinese tech sources also describe the year 2021 as “the metaverse year” (元宇宙元年).
Metaverse is a collective, shared virtual realm that can interact with the real world and where people can interact with each other and the spaces around them. There is not just one single metaverse – there can be many digital living spaces referred to as the ‘metaverse.’
Metaverse is a fluid concept or virtual experience that is still developing and due to the differences in cyber regulations, digital ecosystems, and strict control on online information flows, the Chinese metaverse will unquestionably be very different from the metaverse spheres that companies such as Facebook are working on.
The metaverse is made possible through a wide range of technologies including AI, IoT, Blockchain, Interaction Technology, computer games, and network computing. XR is key to the rise of the metaverse. XR, or Extended Reality, is an umbrella term for a range of immersive technologies including VR (Virtual Reality 虚拟现实), AR (Augmented Reality 增强现实), and MR (Mixed Reality 混合现实). A 2020 Deloitte report suggests that the global XR market consists of mainly VR technologies (48% of market share), followed by AR (34%) and MR (18%).
In December of 2020, Tencent’s CEO Ma Huateng (马化腾) announced the concept of the “All-real Internet” (全真互联网) in a special internal publication regarding the company’s growth and major changes. Ma proposed that the deep integration of the virtual and real world, the “All-real Internet,” is the future opportunity to focus on as the next stage of the (mobile) internet. Although there are some subtle differences, Ma’s idea of the “All-real Internet” overlaps with the concept of the metaverse.
The metaverse, XR, and related technologies are not just a hot issue for Chinese tech companies, they are also an important theme for Chinese authorities. The 20th Party Congress was by no means the first time for China’s leadership to stress the country’s focus on the latest digital innovations. In October 2021, President Xi Jinping also spoke about evolving China’s digital economy during the 19th CPC Central Committee. He asserted that one of the focal points within the development strategy of China’s digital economy is the further integration of digital technologies and real-world economies.
This idea was further clarified in the outline of the 14th Five-Year Plan issued by the State Council at the end of 2021, which listed VR and AR as one of the seven key industries of China’s digital economy along with cloud computing, IoT, AI, and others.
Subsequently, many local governments incorporated metaverse (“元宇宙”) and related relevant terms into their respective 14th Five-Year Plans. For example, Shanghai authorities stated it will focus on the further developments of industries related to quantum computing, 3rd-gen semiconductors, 6G communications, and metaverse.
Here, we will provide an overview of XR industry development in present-day China, going over the key players Baidu, Alibaba, and Tencent (BAT) along with the younger Chinese tech giant ByteDance. We provide an overview of what they are investing in, what their respective strategies are when it comes to XR, and give examples of the kind of initiatives that they have already launched. To limit the scope of this article, we have left out Netease, Huawei, Bilibili, and some other relevant Chinese players for now (we might still make a part two later on!).
Key Players and Strategies
▶︎ BAIDU
As one of the leading artificial intelligence (AI) and internet companies in the world, Baidu specializes in internet and AI-related products and services. Baidu is mostly known as China’s number one search engine, but its ambitions go far beyond that. “We want to be like Amazon Web Services (AWS) for the metaverse,” Ma Jie (马杰), vice president at Baidu, recently said.
The company has taken a special interest in building the infrastructure to support metaverse-related projects, deviating from the strategies that focus more on the XR-related content development and distribution that you see at Tencent or Bytedance.
What’s Happening?
Investments
◼︎ iQiyi (爱奇艺), one of China’s top media streaming platforms (sometimes also referred to as the ‘Chinese Netflix’), released its all-in-one virtual reality headset ‘Adventure Dream’ in December 2021 powered by Snapdragon XR2. Baidu owns 53% of iQiyi and holds more than 90% of its shareholder voting rights.
Research & Development
◼︎ Baidu launched the ‘Baidu VR Browser’ on July 15, 2016, becoming China’s first browser powered by webVR technology.

Xirang
◼︎ In 2017, Baidu launched ‘Baidu VR’ platform, which is now offering a wide range of VR-related software and hardware products and services, including the Baidu VR Headset, VR Creation Center, AI app, and XiRang (希壤), which is referred to as China’s “first metaverse platform.”
What’s Live?
Retail
◼︎ In 2018, Baidu VR and UXin Limited, a Chinese online used car marketplace, jointly developed VR 360° interior panoramas that put viewers in the driver’s seat to see how interior details come together and to better understand the details of each vehicle such as scratches, wheels and engine models.
◼︎ Baidu’s ‘Meta Ziwu’ (元宇宙誌屋Meta ZiWU), a virtual space within XiRang, hosts various fashion shows for international brands. In August of 2022, Italian luxury fashion house Prada livestreamed its Fall 2022 collection within the interactive realms of ‘Meta Ziwu,’ and so did Dior, the French fashion house which has also launched its first-ever metaverse exhibition “On the Road” (在路上) via Meta Ziwu.
Social Networking
◼︎ In late 2021, Baidu launched its metaverse project XiRang (希壤, ‘the land of hope’) as “the first Chinese-made metaverse product.” In December, Baidu held ‘Baidu Create 2021′, a three-day annual developers’ conference in a virtual world generated by the XiRang platform, hosting 100,000 people on one set of servers at the same time. Baidu’s Vice President Ma Jie, also Head of the Metaverse XiRang project, shared that the main goal behind this project is to lay the infrastructure of the metaverse by providing developers and content creators with the tools to build their metaverse projects.

Chinese architect Ma Yansong (马岩松), founder of MAD architects, also works together with Meta Ziwu as a virtual architect.
▶︎ALIBABA
Founded in 1999, Alibaba is one of the world’s largest e-commerce and cloud computing companies in Asia Pacific. Its massive success in e-commerce also established Alibaba’s leading position in artificial intelligence and other key technologies that have supported e-commerce, as well as in the future of metaverse.
As one of the biggest venture capital firms and investment corporations in the world, Alibaba struck several deals with prominent XR companies including Magic Leap and Nreal to gain footing in the Extended Reality industry.
As for R&D, Alibaba’s ambition in becoming the world’s fifth-largest economy led to a strong emphasis on technological research and XR-focused innovation and the founding of DAMO Academy.
Within the field of XR, Alibaba primarily focuses on two aspects: underlying technology solutions (e.g. cloud computing) and XR application in its own core business model (e-commerce).
What’s Happening?
Investments
◼︎ In February 2016 and October 2017, Alibaba led the investment rounds in Magic Leap, an augmented reality firm headquartered in Florida.
◼︎ In March of this year, Alibaba led a $60 million investment round of Beijing-based augmented reality glasses maker Nreal. Nreal, founded in 2017, has since launched two AR glasses for the Chinese market: Nreal X for developers and content creators and Nreal Air for regular consumers. Nreal Air glasses have been released in Japan and the UK in February and May of this year. In addition to AR glasses, Nreal also cooperated with iQiyi, China Mobile Migu, Weilai, and Kuaishou to develop AR content.
Research & Development
◼︎ In March 2016, Alibaba announced its own VR research lab, GM LAB ( ‘GnomeMagic’ Lab), which aims to power its e-commerce platform and other subsidiary businesses such as the VR content production for its film and music platforms.
◼︎ Alibaba registered several metaverse-related trademarks, including “Ali Metaverse.”
◼︎ In 2021, Alibaba’s DAMO Academy, a global research program in cutting-edge technologies, launched ‘X Lab’ that focuses on research in key areas related to the metaverse industry, including quantum computing, XR, and xG Technology. Tan Ping (谭平), the former Head of XR Lab, shared several of their ongoing projects at the time. One example he mentioned is the virtual character Xiaomo (小莫), who is very versatile and can, among other things, convert textual information into sign language to enable smoother communication for the hearing impaired.

Xiaomo by Alibaba can turn spoken text into sign language.
‘X Lab’ is also experimenting with making history come alive through virtual initiatives. Recently, Alibaba’s cloud gaming platform Yuanjing made it possible for visitors at their Alibaba Cloud’s Apsara conference to virtually visit the Xi’an Museum and check out its artifacts via mobile phone or laptop, or to have an immersive experience of the Tang dynasty’s imperial palace complex, powered by automatic 3D space creation and visual localization technology.
What’s Live?
eCommerce
◼︎ In November 2016, Alibaba launched the Mobile BUY+ feature in Taobao mobile apps in light of its annual Single’s Day Global Shopping Festival. With VR headsets and the app, China-based Taobao shoppers could experience shopping in-store at Target, Macy’s, or Costco in the US and other malls located in countries such as Japan and Australia.

◼︎ As Alibaba constantly keeps innovating its e-commerce landscape, its research institute DAMO Academy, in collaboration with its licensing platform Alifish, rolled out an XR-powered marketplace on Alibaba’s e-commerce platforms Tmall and Taobao for its November 2022 Single’s Day festival that allows consumers to visit virtual shopping streets and shop for merchandise as their own customizable avatars.
Entertainment
◼︎ In 2021, Alibaba led a $20 million Series A financing round of DGene, a virtual reality and immersive entertainment developer. Among others, DGene creates digital influencers or can even recreate historical figures based on its AI-driven technologies.

Dong Dong was launched as the first virtual brand ambassador for the Winter Olympics in 2022.
◼︎ For the Olympic Winter Olympics in 2022, Alibaba launched Dong Dong, a digital persona developed by Damo Academy using cloud-based digital technologies. Dong Dong was able to engage with fans and online viewers through livestreams, respond to questions in real time, and she even hosted online talkshows.
▶︎TENCENT
As a multinational technology and entertainment conglomerate with the highest-grossing revenue in the world, Tencent has the financial resources to gain an upper hand in technological innovation through acquisition and investment. In 2021 alone, Tencent made a total of 76 investments in Gaming, accounting for 25.2% of Tencent’s total investment throughout the year – a 9.3% increase compared to 2020. Tencent is now the biggest gaming company in the world.
Tencent also ramped up the company’s total headcount working in R&D department by 41%, accounting for 68% of its total workforce in 2021.
Although XR is used to create immersive experiences in different industries including healthcare, manufacturing, or education, its primary fields are still gaming and social – which just so happen to be Tencent’s main focus areas. It is therefore perhaps unsurprising that Tencent, as the country’s Gaming & Social giant, has made XR part of its core business.
What’s Happening?
Investments
◼︎ In 2012, Tencent made an investment in Epic Games, the owner of Unreal Engine which powers well-known video games such as Fortnite, purchasing approximately 40% of the total Epic capital, making it the second largest shareholder. Epic Games’ major businesses span across RT3D game engine (Unreal), in-house developed games (Fortnite), and platform games. This investment is one of the reasons why Tencent conquered a leading position in the metaverse realm when it comes to games.
◼︎ As early as 2014, Tencent already tapped into the VR market by investing in social VR platform AltspaceVR, which was later acquired by Microsoft in 2017.
◼︎ In May 2019, Tencent and Roblox announced a joint venture in which Tencent holds a 49% controlling stake.
◼︎ In September of 2021, Tencent became the new investor behind Beijing-based VR game developer Vanimals (威魔纪元), known for its flagship games Undying and Eternity Warriors VR.
◼︎ In November 2021, Tencent joined the $82M Series D fundraising of Ultraleap, the world leader in mid-air haptics and 3D hand tracking. Ultraleap’s hand-tracking platform has been built into multiple platforms including Qualcomm’s XR and VR devices.
◼︎ In March 2022, Tencent invested in the Chinese AR glasses manufacturer SUPERHEXA (蜂巢科技) holding 7.3% of its shares.
Research & Development
◼︎ In 2015, Tencent announced its avant-garde VR Project ‘Tencent VR,’ a plan consisting of building its own VR games and releasing Tencent Virtual reality software development kits (VR SDKs) to support other VR game developers.
◼︎ As of September 2021, Tencent applied for registration of nearly 100 trademarks related to the metaverse, including “Tencent Music Metaverse” (腾讯音乐元宇宙).
◼︎ In June 2022, Tencent officially set up its XR department led by its Interactive Entertainment Division (IEG) game developer NExT Studios. During Tencent’s annual gaming conference SPARK 2022, the Head of IEG, Ma Xiaoyi (马晓轶), shared Tencent’s ambitions in charting all segments of the VR industry in the next 5 years, from developer software tools and SDKs to VR hardware, to consumer-facing content.
◼︎ NExT Studios, which is the youngest studio within the Tencent Games family, has partnered with the Shenzhen-based FACEGOOD, a 3D content generation technology company that is focused on building metaverse infrastructure.
What’s Live?
Gaming
◼︎ At ChinaJoy 2019, the largest gaming and digital entertainment exhibition across Asia, Tencent launched its cloud gaming solution on its WeGame client, allowing users to play several games instantly without a download. In December of that year, Tencent Games and global leader AI hardware & software leader Nvidia announced a new partnership to launch the START (云游戏) cloud gaming service for PC and console titles.

◼︎ Following the Sino-American joint venture with Roblox in May 2021, Tencent officially launched the Chinese version of Roblox (罗布乐思) topping the App Store free game list in July of 2021.
Social Networking
◼︎ In November 2021, Tencent led a $25 million Series A funding in the British developer Lockwood Publishing best known for the metaverse app Avakin Life, which allows users to create 3D characters and socialize in the virtual community.
◼︎ During the Lunar New Year in February 2022, Tencent’s instant messaging software QQ launched a new feature called “Super QQ Show” (超级QQ秀), which is an upgrade of its ‘QQ Show’ service that’s been running since 2003. Super QQ Show allows users to create their own 3D avatars and use them in an interactive context. It added AI face recognition and rendering. The platform is an interesting one for brands. Fast-food chain KFC even has its own restaurant in this virtual world.

Visiting KFC in the Super QQ Show.
◼︎ In the summer of 2022, the Tencent-backed app developer company Soulgate Inc., which operates the social networking app Soul, applied to be listed on the Hong Kong Stock Exchange. Tencent is the largest shareholder holding 49.9% of the shares. Soul is a virtual social playground with the mission of “building a ‘Soul’cial Metaverse for young generations” where users can connect with other users through the virtual identity they develop in the app. The majority of its users, nearly 75%, belong to Gen-Z.
Entertainment
◼︎ On New Year’s Eve of 2021, Tencent Music Entertainment (TME) Group launched China’s first virtual social music platform TMELAND, where users can create their own avatars and interact with each other through their “digital identity.” It’s worth mentioning that TMELAND was powered by the ‘Hybrid Edge-Cloud Platform Solution’ developed by XVERSE (元象科技), which was founded by a former Tencent executive committed to building a one-stop shop for 3D content development.

Coca Cola zone in TMLAND.
Recently, Coca-Cola partnered up with TMELAND to open a new metaverse zone, accessible via the TMELAND mini-programme on WeChat.
▶︎BYTEDANCE
Known as “the world’s most valuable startup,” the Bytedance success story started with the algorithm-powered Toutiao (头条 ‘Headlines’) in 2012, a news and content platform that personalizes content for each user based on their own preferences. The Bytedance app TikTok (Douyin in China) conquered the world as one of most successful Chinese apps internationally.
Bytedance is a social networking leader, but is also focused on its in-house development in VR/AR. By 2021, Bytedance had completed at least 76 investment events, more than the previous two years combined.
From ByteDance’s activities in the XR industry, the company seems to have its strategy primarily focused on hardware, content development, and distribution across gaming, social networking, and entertainment industries.
What’s Happening?
Investments
◼︎ As early as 2018, Toutiao (Bytedance’s core product) acquired VSCENE (维境视讯) a Beijing-based solution provider for VR Live streaming.
◼︎ In July 2020, Bytedance participated in Series A funding of Seizet (熵智科技), an industrial automation company that provides a 3D industrial camera and software.
◼︎ In February 2021, Bytedance invested in Moore Threads (摩尔线程), a company that specialized in visual computing and artificial intelligence fields. In November last year, Moore Threads announced it has developed China’s first domestic full-fledged graphic processing unit (GPU) chip. Along with 5G communications, Wi-Fi 6, cloud computing, and chip technology, GPU is considered one of the main infrastructure technologies of the metaverse.
◼︎ In August 2021, ByteDance acquired Chinese VR hardware maker & software platform Pico for approximately $771 million to support its long-term investment in the VR ecosystem. By the end of Q1 2022, Pico is estimated to hold a 4.5% share of the global VR market, following Meta which is the dominant global player (90%). This year, Bytedance has set a higher sales target for Pico headsets to reach 1.6 million device output. To meet its VR industry goals, Bytedance is investing more into promotion and hiring more staff for Pico to catch up with or even surpass Meta’s Quest.
◼︎ In June 2022, ByteDance acquired PoliQ (波粒子), a team specialized in making virtual social platforms that allow users to interact with one another using their self-invented avatars in the virtual world. Jiesi Ma, the founder of PoliQ, is appointed to lead the VR Social department at ByteDance.
Research & Development
◼︎ To boost its entire VR ecosystem, Pico is engaging in more partnerships with Hollywood’s major film studios and leading streaming media companies in China (iQiyi, Youku, Tencent Video, Bilibili, and so on). In July 2022, Pico hosted Pico WangFeng@VR Music + Drifting Fantasy concert which leveraged 3D 8K VR Live Streaming technology to create a “magical” and immersive visual musical experience. By wearing Pico’s VR headsets, the audience can enjoy Wang’s performance from 5 different angles and as close as a meter away.
What’s Live?
Gaming
◼︎ On February 22, 2021, Bytedance released its game development and publishing brand Nuverse (朝夕光年). To date, Nuverse has launched several successful games through APAC and the western markets including “Burning Streetball” (热血街篮), “Houchi Shoujo” (放置少女), “Ragnarok X: Next Generation” (RO仙境传说:新世代的诞生), “Mobile Legends: Bang Bang”, and “Warhammer 40,000: Lost Crusade.”
◼︎ In April 2021, Bytedance put another US$15 million into Chinese Roblox competitor Reworld (代码乾坤), a platform for creating game worlds and playing games using the company’s own simulation engine.
Social Networking
◼︎ In September 2021, Bytedance launched its avatar app Pixsoul in Southeast Asian markets and Brazil. Users can create personalized avatars and use them to socialize.
◼︎ In January 2022, Bytedance launched a beta version of its virtual social app “Party Island” (派对岛) where users can make friends with people sharing similar interests and hang out with avatars in various virtual settings such as parks and movie theaters. However, the app was reportedly removed from app stores again and its date of relaunching is unknown.
Entertainment
◼︎ In September 2021, TikTok introduced its creator-led NFT collection titled “TikTok Top Moments” where TikTok will feature a selection of culturally-significant TikTok videos from some of the most beloved creators on the platform. Powered by Immutable X, users can ‘own’ a moment on TikTok that broke the internet and trade the TikTok Top Moments NFTs.

Li Weike, image via Pandaily.
◼︎ In January 2022, ByteDance bought a 20% stake in Hangzhou Li Weike Technology Co., Ltd. (Li Weike, 李未可). The company aspires to build China’s first AI+AR-powered glasses that connect users with the virtual idol Li Weike, a digital character built by the company to help users with various tasks and essentially provide users with social and emotional support.
By Jialing Xie and Manya Koetse
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Jialing is a Baruch College Business School graduate and a former student at the Beijing University of Technology. She currently works in the US-China business development industry in the San Francisco Bay Area. With a passion for literature and humanity studies, Jialing aims to deepen the general understanding of developments in contemporary China.
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Chapter Dive
Cancel-Proof: The Rise of China’s AI Actors
China’s AI actors are on the rise, and not everyone is buying it. The country’s microdrama industry offers a glimpse of what’s to come for the broader film and TV sector.
Published
5 days agoon
April 10, 2026By
Ruixin Zhang
Is this the real life? Is this just fantasy? In the fast-growing world of China’s AI microdramas, even virtual actors can’t escape reality. As production companies turn them into idols, audiences are voicing discomfort, while the future for human actors looks increasingly uncertain.
– By Ruixin Zhang and Manya Koetse
For Chinese audiences, AI in film and television is nothing new. In the fall of 2023, the first fully AI digital performer in a Chinese domestic drama, the character Erzhuang (二壮) in I Am Nobody (异人之下) sparked debate on Chinese social media.
Some fans, due to Erzhuang’s convincing northeastern Chinese dialect and natural expressions, almost couldn’t believe she wasn’t a real actress.

Erzhuang in I Am Nobody (异人之下) in 2023.
But Erzhuang was just the beginning.
In 2024, China Mythology (中国神话) was promoted by state media as China’s first fully AI-produced short drama series.
A year later, In My Heart, You Are One of a Kind (在我心中,你是独一无二) premiered as Hong Kong’s very first AI-generated short drama, a youth campus romance that sparked further discussion about whether AI actors could actually replace human actors.

From the two AI dramas from 2024 and 2025: China Mythology and In My Heart, You Are One of a Kind.
Those discussions were reignited in late March of this year when Shanghai-based production company Yaoke Media (耀客传媒) introduced two newly signed AI actors, Qin Lingyue (秦凌岳) and Lin Xiyan (林汐颜), who’ll be starring in the fantasy short drama Qinling (秦岭).

Qin Lingyue (秦凌岳) and Lin Xiyan (林汐颜)
Unlike earlier AI figures in microdramas, this high-profile ‘signing’ marks a shift: the company plans to develop these characters as independent IPs, much like human actors. In other words, they are to attract fans both through their on-screen performances and their off-screen ‘personalities.’
Soon after, the two AI actors created their own social media accounts on Douyin and Xiaohongshu, and began cultivating a sense of authenticity and ‘liveness’ (活人感).

A real-looking social media profile.
But as these digital performers and real actors become harder to distinguish, audience discomfort is growing, too.
The Rise of AI Microdramas
In China’s microdrama market, AI is already playing a dominant role, with “AI dramas” (AI剧 or AI短剧) standing out as a distinct creative category within the broader industry.
Microdramas, also simply known as short dramas, have been around in China for at least a decade, but have become especially popular in recent years due to their vertical, ultra-short formats, designed for quick mobile viewing and easy ‘binge watching.’ Microdramas typically run for 60 to 100 episodes, but with each episode lasting just one to three minutes, an entire season can be watched in an hour or two.
That format also makes the industry particularly well-suited to AI. It is large, fast-moving, and often operates on limited budgets, with productions turning around quickly. In this environment, using AI-generated effects and AI actors simply makes sense. This is very different from traditional drama production, which typically involves longer timelines, higher budgets, well-known actors, and less room for experimentation.
“AI is no longer just an add-on in China’s drama sector—it is an integral part of the production process”
As a result, AI is no longer just an add-on in China’s short drama sector—it is becoming an integral part of the production process, with digital actors helping to improve efficiency and reduce costs. With the launch of Bytedance’s Seedance 2.0, production costs for AI-generated videos have dropped significantly, further boosting the growth of AI microdramas.
The scale of this shift is already clear: AI microdramas are now often outpacing live-action productions on trending charts. In 2025 alone, one Zhejiang-based production company (刚刚好影视) released 229 AI micro-dramas, generating over 513 million views.
According to Sixth Tone, short dramas featuring AI actors already represented approximately 40% of the top 100 animated short dramas in January 2026.
Turning AI Actors into Real Idols
With AI and microdramas entering a kind of symbiosis, virtual actors are no longer disposable, one-off creations. They are evolving into continuous, persona-driven figures, often designed to resemble real celebrities—much like “fandom-driven actors” (流量演员), whose core function is to monetize fan attachment and sell fantasies rather than just act.
According to Yaoke Media, their plans for Qin Lingyue and Lin Xiyan are similar to those of idol models: they are expected to interact with fans, appear in multiple productions, and eventually become monetizable assets through brand endorsements and image licensing.
This also means they will likely take on the full spectrum of idol labor, including promotional events, fan service, and carefully manufactured on-screen chemistry—sometimes even “queerbaiting” (卖腐). (There’s no perfect English equivalent, but the term refers to deliberately staging romantic interactions between two male characters aimed in particular at a female “danmei” fans or “rotten girls” audiences who like indulging in such fantasies.)
In one AI costume drama, behind-the-scenes clips showed the lead actor and actress “live-streaming” together, answering fan questions, and deliberately hyping up their on-screen chemistry.

“Behind the scenes” livestream screenshots by AI actors.
Such human-coded content is now increasingly becoming an important part of the AI microdrama industry.
Some of these online videos also show the supposed perspective of “fans” and “staff” watching the actors walk around or interacting with them, creating a simulated world that some netizens feel is pushing a sense of “realness,” with comments like: “Please don’t force AI to act so human-like.”
“AI actors featuring in AI dramas that are watched by AI audiences, it’s the perfect closed loop”
For the same AI costume drama, some clips even mimic the perspective of ‘fansite admins’ (站姐)—dedicated fan photographers who typically capture and share candid, off-stage footage of real stars.

In one vlog by a supposed prop assistant, she appears as an overworked but witty crew member, taking viewers around the set, chatting with the leads, buying them coffee, and even stepping in as an extra.

“Behind the scenes” of an AI microdrama.
These glimpses of everyday, behind-the-scenes life all feel oddly real, but everything is AI-generated: the actors, the sets, the audience interactions, the staff, even the paparazzi (see example videos here and here).
For ordinary audiences, it is striking how deeply AI has already penetrated the film & television industry. Beyond criticisms of stiff expressions and rigid aesthetics, many netizens describe the new phenomenon as “uncanny” or “just too real😨.”
With AI actors now realistic enough to pass as human at a glance, but with small details like emotional expression still being off, that gap between being almost human but not quite creates a sense of discomfort among viewers, who dub these AI actors ‘stuffed monsters’ (缝合怪) or ‘stitched-together corpses’ (尸块).
More than the actors, it’s the entire ecosystem around them that makes us believe we’re watching “candid moments” of something that is not even alive. Screenwriter Wang Hailin (汪海林) was sarcastically commented on Weibo: “AI actors featuring in AI dramas that are watched by AI audiences 👍, it’s a perfect closed loop.”
‘Borrowing’ Facial Features
Besides the simulated “aliveness” of digital performers, another controversial issue surrounding the recent rise of China’s AI actors is whether these creations infringe on portrait rights. Since the debut of Qin Lingyue and Lin Xiyan, these AI figures have been criticized for appearing to use facial features from multiple real actors.
As online discussions intensify, more AI actors in microdramas have been found to resemble real celebrities. Fans of beloved Chinese celebrities such as Dilraba Dilmurat (迪丽热巴) and Xiao Zhan (肖战) have taken to Weibo to protest this kind of “face swapping” (AI换脸) and demand protection of their idols’ likenesses.

An “AI face swap” (AI换脸): an AI actor on the left, Xiao Zhan on the right.
Yaoke responded that these images were “derived from massive datasets on the internet” and did not replicate any specific individual’s features.
This only fueled further backlash. To many, the use of “massive data” suggests that anyone, celebrity or ordinary person, could potentially have their image appropriated.
“The vlogger discovered the face swap infringement after a friend recognized his face while watching the AI drama”
In related recent trending news, a Chinese content creator (白菜汉服妆造), who typically wears traditional Chinese clothing in his videos, accused Hongguo (红果短剧), ByteDance’s short drama platform, of using his likeness without authorization to create a greedy villain in the AI-generated drama Taohua Zan (桃花簪).

On the left: greedy villain in the AI-generated drama Taohua Zan. On the right: Chinese content creator (白菜汉服妆造).
The vlogger discovered the face swap infringement after a friend recognized his face while watching the drama. The series was later taken offline.
One problem is that legal frameworks around AI lag behind technological development: by the time victims try to fight back legally, the technology has already moved on, making enforcement almost impossible.
Better Than the Real Thing?
Despite the backlash against the AI-fication of China’s short drama industry, some netizens are more optimistic about its development.
One blogger recently noted that as many people have already formed near friendship-like emotional dependencies on chatbots like ChatGPT—initially seen as cold technological tools—it is entirely possible that audiences will also develop genuine attachment to AI actors.
Current limitations that still make AI actors feel stiff, such as robotic voices or unnatural expressions, will likely diminish as the technology continues to improve.
Some call binging on AI short dramas their “guilty pleasure,” just to watch the AI actors perform. As one Weibo user wrote: “The female characters are just so beautiful—seriously, unbelievably beautiful. And they’re becoming more and more realistic: their facial expressions, especially the way their mouths move, are incredibly precise. Even the makeup looks stylish, and the hair feels very real. I honestly find myself wondering what eyeshadow and mascara they’re using.”
But support for AI performers in China’s drama industry is not limited to guilty pleasures and tech enthusiasts. For some, it also reflects a broader weariness with the perceived lack of quality among human actors.
“If the performances of real actors are already no better than AI, why not use AI actors instead?”
China’s film and television industry’s strong focus on fandom culture and good-looking idols, combined with limited budgets and a lack of formal training, has produced a wave of actors who are widely criticized for poor acting and a lack of professionalism. They are also frequently caught up in controversies, from refusing to memorize lines to relying heavily on green-screen acting.
These criticisms intensified during the 2021 major scandal involving former drama actress Zheng Shuang (郑爽), who had long faced criticism over her acting. A leaked recording at the time revealed she was earning a staggering 2.08 million RMB per day (roughly $320,000 then). Since then, “2.08 million” (208万) has become a derogatory label for fandom-driven actors who get high pays despite low-quality performances.
Amid weak acting and a distorted pay structure, many viewers have been calling for change. A common sentiment is: if their performances are already no better than AI, why not use AI actors, and give real actors a sense of crisis?
From Cancel Culture to AI Actors
But will the use of AI actors actually push the industry to improve human actors, or simply replace them?
Some Chinese industry insiders remain optimistic, arguing that AI can never fully replicate the nuance of human emotion. Among those who have spoken out are A-list actors such as Zhang Ruoyun (张若昀) and Feng Yuanzheng (冯远征), president of the Beijing People’s Art Theatre.
Others, however, are less optimistic.
“China’s “cancel culture” will eventually make AI actors an increasingly attractive bet for industry investors”
Agan Jackie (阿甘Jackie), a streamer working in the film industry, pointed out in a recent podcast that China’s “cancel culture” will eventually make AI actors an increasingly attractive bet for industry investors.
Although there’s “cancel culture” in the Western entertainment industry as well, the moral bar for Chinese celebrities is exceptionally high: anything from tax evasion to littering, simply being rude to fans could destroy an actor’s commercial value. The superstar Fan Bingbing (范冰冰), for example, disappeared from public view after a tax evasion scandal. Even after repaying her debts, she is still effectively banned from mainland productions.
China’s cancel culture is also closely tied to political red lines. One remark or move – intended or not – could end a career overnight. Zhang Zhehan (张哲瀚), an actor who quickly rose to fame a few years ago, vanished from the industry after photos surfaced of him posing near the Japanese Yasukuni Shrine.
For production companies and streaming platforms, such unpredictability creates a high-investment, high-risk environment. “Scandal-proof” AI actors offer a low-risk substitute.
This perhaps also plays a major role in why major streaming platforms such as Tencent and iQiyi are now promoting or encouraging the use of AI actors through AI feature film experiments, with the first fully AI-generated commercial blockbusters expected to be released later this year.
A Glimpse into the Future
At the recent China TV Drama Production Industry Conference, it became clear that the industry is undergoing something of an earthquake, with major changes ahead: while top actors will continue to function as traffic drivers, demand for human actors is expected to decline, and much of the mid- and lower-tier acting segment (such as extras and body doubles, but also voice actors) could largely disappear as it becomes replaceable by AI.
The microdrama industry, already heavily infiltrated by AI, offers a glimpse of the future of the broader TV and film industry when it comes to digital performers.
Microdrama actress Zhou Ye (周野) recently said that her pay has been slashed by 50% since AI-driven microdramas flooded the market, leaving many more actors jobless. For the 140,000 registered extras at Hengdian World Studios, China’s largest filming base, these developments could have far-reaching consequences.
Sometimes, these actors even sign away their fate—quite literally—as some companies now require “AI authorization” clauses as a condition of employment, effectively selling their digital likeness just to get a job. Companies can then create AI actors based on real individuals. Chinese talent management company Yuxiao Media (聿潇传媒) has introduced six such AI actors, directly modeled on real performers.
“The microdrama industry, already heavily infiltrated by AI, offers a glimpse of the future of the broader TV and film industry when it comes to digital performers”
One of these, influencer Han Anran (韩安冉), openly stated during a livestream that she had sold her likeness rights for AI creation. Playing into public criticism of her acting and heavily altered appearance, she said this was the best way to monetize her image. She even wondered that if her AI doppelganger were ever to win an award, whether she or the AI should go on stage to accept it.

Han Anran (韩安冉) on the left and the AI actress modeled after her on the right.
Perhaps nobody likes to see ordinary actors’ livelihoods being taken over by AI. But despite concerns about shrinking job opportunities, China is unlikely to see Hollywood-like strikes, as it lacks unions or organizations comparable to SAG-AFTRA or the AFL-CIO, which focus on labor representation beyond awards and industry guidelines.
For now, the only collective pushback against the full “AI-fication” of the industry comes from Chinese netizens themselves: boycotting platforms and production companies using AI actors, and voting with their views. Ultimately, only when public demand for realness becomes strong enough to threaten profits—or when laws finally catch up—will there be a sense of security for the people behind the screen—the real ones.
By Ruixin Zhang, with editing and additional context by Manya Koetse
©2026 Eye on Digital China/Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.
Chapter Dive
Chinese Postdoc Death Raises Questions as Key Details Remain Missing
About a widely discussed “chilling effect”, the death of Chinese researcher Wang Danhao, and unanswered questions. (April 3 update included)
Published
2 weeks agoon
April 1, 2026
A Chinese postdoc’s reported suicide after questioning by US authorities became a top trending topic in China this week. Despite the widespread attention, key details remain unclear, highlighting broader concerns about the increasingly sensitive position of researchers across the US–China scientific landscape.
On March 27, news about a Chinese postdoctoral researcher based in the United States who allegedly died by suicide a day after being questioned by US law enforcement officials began trending on Chinese social media.
The news came out during the Friday regular press briefing, where a CCTV reporter asked China’s Ministry of Foreign Affairs (MFA) spokesperson Lin Jian (林剑):
🗣️ “We’ve learned [据了解] that recently, a Chinese postdoctoral scholar took their own life a day after being subjected to questioning by US law enforcement personnel. What’s the Foreign Ministry’s comment?”
Spokesperson Lin Jian responded that China is “deeply saddened by the tragedy,” and added that Chinese authorities have formally protested to the US, further commenting:
🗣️”For some time now, the US has been overstretching the concept of “national security” for political purposes, carrying out unwarranted questioning and harassment of Chinese students and scholars, infringing upon the legitimate rights and interests of Chinese citizens, undermining the normal atmosphere of China–US people-to-people exchanges, and creating a serious “chilling effect.””
Lin Jian emphasized that China urges American authorities to conduct a thorough investigation into the case, provide answers to the victim’s family and to China, and stop any “discriminatory law enforcement against Chinese students and scholars in the United States.”

Lin Jian during the March 27 press briefing.
The “chilling effect” referenced by Lin Jian, in Chinese, is hán chán xiàoyìng (寒蝉效应), referring to a climate of fear in which people do not dare to speak out.
While xiàoyìng simply means “effect,” hán chán (寒蝉) literally means “a cicada in cold weather”—a metaphor for a repressive environment, as cicadas fall silent and become inactive in colder temperatures.
From MFA Briefing to Trending Topic
Following the press briefing, major Chinese news outlets like Xinhua and Global Times picked up the news and amplified the MFA statement across both their international and domestic channels, after which it quickly entered the top five “hot search” lists on platforms like Bilibili, Kuaishou, and Baidu. The MFA statement was also covered by Newsweek.
What is particularly noteworthy about how this news entered the online discourse is that it was reported solely through top-down, official channels. Unlike many incidents involving Chinese nationals overseas—particularly in cases of sudden death or personal tragedy—it did not first surface on social media through posts by friends or family members before prompting an official response. Nor were there any identifiable reports from local news or overseas Chinese community platforms that broke the story before the MFA did.
This left many questions about which university this researcher was affiliated with, where the incident occurred, and why the CCTV reporter asked this question on March 27 without any published news reports to go by.
Some have argued the Chinese government deliberately amplified the story to stir anti-American sentiment amid broader US-China tensions — a claim made, without supporting evidence, by the notoriously biased Epoch Times outlet.
🔍 Given the lack of details, Weibo’s own AI chatbot attributed the incident to the death of Li Haoran (李昊然). Li was a postdoctoral researcher at Princeton University who died at home in September 2025. On February 13, 2026, his death was officially ruled a suicide. Since this case predated the current report and has never been linked to law enforcement questioning, this appeared to be a hallucination error by the Weibo chatbot.

Weibo chatbot “hallucinating” and linking the current case to Li Haoran. Screenshot by author, March 27.
At the same time, claims popped up on social media regarding a recent suicide involving a researcher in the Department of Electrical & Computer Engineering (ECE) department at the University of Michigan.
One US-based Xiaohongshu user shared a screenshot of an email sent by University of Michigan staff on March 20 regarding the “sad news of the death of an Assistant Research Scientist (..) who fell from an upper story of the GG Brown building last night.”
The social media post, as well as an entire thread on another US-based Chinese community forum, had vanished by Monday, March 30, returning a “404” message.
The Michigan connection was also indirectly raised by some netizens (such as “Science Futurist” @科学未来人), who referenced earlier cases where Chinese researchers at the University of Michigan were allegedly “arrested, humiliated, and tormented.”
(🔍 Although there have been multiple incidents involving Chinese researchers at the university, this particular commenter referred to postdoctoral fellow Jian Yunqing (简云清), who was arrested by the FBI in June 2025 on charges including conspiracy and smuggling small samples of “toxic biological materials” into the US. This involved a crop-affecting fungus studied by Jian that, while also found in US fields, is illegal to import without a permit and is classified as a hazardous biological pathogen.)
Meanwhile, at the time of writing, few reports have emerged identifying any key details of the current case, and this lack of information surrounding the incident, both on the American and Chinese sides, is especially noteworthy for a case that has been framed as a major incident and a significant development in Sino-American academic exchanges.
The Michigan Connection
On March 31, the Chinese Consulate General in Chicago issued a statement via its WeChat account, responding to media inquiries regarding a Chinese scholar’s suicide following questioning by US law enforcement.
🗣️ The spokesperson confirmed that the case had occurred at a US university within its consular district, reiterating the sentiments expressed by the MFA and again using the term “chilling effect” (寒蝉效应, hán chán xiàoyìng). The statement criticized what it described as the US side’s use of “national security” to carry out unwarranted and politically motivated questioning and harassment of Chinese students and scholars.

Wechat post by Chinese Consulate in Chicago, March 31.
The Hong Kong newspaper Sing Tao Daily then connected the case to the University of Michigan’s ECE department, citing the aforementioned internal email and reporting that a local researcher died after falling from a height on the university’s North Campus.

The G.G. Brown Building, where the incident allegedly happened, when it was still under construction in 2013, photo by Michael Barera via Wikimedia Commons.
The deceased researcher was reportedly an Assistant Research Scientist on the team of Professor Zetian Mi, who specializes in semiconductors, nanomaterials, and optoelectronic technologies.
Professor Mi has been previously honored for his contributions to the growth of wide bandgap semiconductor materials, and leads a top-tier semiconductor research group that has received millions of dollars in funding from the US Department of Defense, published groundbreaking research, and earned prestigious awards in photonics and semiconductor science.
A Researcher at the Intersection of US–China Science
One Assistant Research Scientist previously listed on the official ECE website—who worked in Mi’s lab but has now been removed from the public staff list—is Dr. Wang Danhao (汪丹浩).
Wang’s research focused on next-generation semiconductor materials, including ultra-thin and ferroelectric systems with applications in electronics and photonics. He was previously part of a University of Michigan research team that explained why a new class of ferroelectric semiconductors can sustain opposing electric states without breaking apart—work published in Nature and supported by US funding sources, including the Army Research Office.
Over the years, Wang has built an extensive body of research published in some of the most prestigious scientific journals, including Nature Electronics, Nature Communications, and Science Advances.
More recently, Wang was listed as a co-first author on a study—covered by various industry publications—regarding a neuromorphic vision sensor capable of sensing, storing, and classifying images without external circuits, reportedly achieving over 95% recognition accuracy. The research was led by Professor Sun Haiding’s iGaN lab at the University of Science and Technology of China (USTC) and funded by Chinese government sources, including the National Natural Science Foundation of China.
Various Chinese sources have described this research as a breakthrough, noting that USTC developed the first optoelectronic diode integrating sensing, memory, and computing in a single device (“中国科大研制出首个具有感存算三合一功能的光电二极管”) (USTC link and news sources here and here).
According to Washtenaw County vital records, Wang Danhao died on March 20, 2026.
On that very same day, the research he contributed to (“A single diode with integrated photosensing, memory and processing for neuromorphic image sensors”) was published in Nature Electronics.
Wang’s profile, spanning research of interest to military and defense institutions, reflects involvement in both US-funded semiconductor projects (including work supported by the Army Research Office & within a DARPA-funded lab), as well as collaboration on Chinese government-funded research with a Chinese state university. This cross-institutional, cross-funded research highlights the increasingly complex and sensitive position of researchers operating across the US–China scientific landscape.
From a Mysterious Case to Serious Concerns
For now, many questions still surround this case, with official reports—from both the American and Chinese sides—likely to follow. At the time of writing, neither US government agencies nor the University of Michigan have publicly responded to the MFA statement or the Chicago consulate statement.
What we do know, and what is supported by prior studies, is that many Chinese researchers feel pressured and unsafe while carrying out academic work in the US, partly due to concerns about government investigations targeting researchers of Chinese origin.
In this recent case, Chinese online responses reflect that sentiment.
In some of the more notable discussions on Zhihu (such as this thread), users comment on the case’s mysterious nature while also linking it to a broader pattern of scrutiny and pressure on Chinese researchers in the United States.
These discussions reference past FBI investigations of Chinese academics under the so-called “China Initiative,” a 2018–2022 program launched by the US Department of Justice to counter espionage and intellectual property theft involving China.
🔍 One case mentioned is the 2024 death of Northwestern University Chinese-American neuroscientist Jane Wu (吴瑛), who died by suicide following years of federal scrutiny over her China-related ties, during which her lab was shut down, and her academic presence was later removed online.
In this context, some commenters also express skepticism about the suicide narrative in the current case. One popular comment stated:
💬 “Former Boeing quality manager and whistleblower John Barnett once publicly stated that if anything were to happen to him, it would not be suicide. On March 9, 2024, he was found dead in his car in a hotel parking lot in Charleston, South Carolina. The official ruling was suicide. He had been scheduled to testify that day, exposing issues related to Boeing’s production quality.”
Another commenter—a graduate of Peking University—argued that the US is no longer seen as a safe destination for Chinese researchers:
💬 “No matter how you look at it, he had already made it to the postdoc level, traveled all the way across the ocean only for things to end like this, it’s so unfortunate. Looking back now, the three years of the pandemic mark a very clear turning point. The “Bald Eagle” (白头鹰 – the US) is no longer an ideal destination for Chinese students, and is gradually no longer an ideal place for academic exchange and research either.”
At the same time, institutional responses are also taking shape.
🗣️ Dr. Nick Geiser, leader of the University of Michigan Postdoctoral Researchers’ Organization (UM-PRO), the union representing 1,500 postdocs, told Eye on Digital China they are currently bargaining with the university.
The union is preparing a proposal on international scholar rights that would ensure foreign postdocs are supported by the university in cases of abrupt funding cuts or warrantless investigations by US federal authorities.
This is a developing story. At the time of writing, there is no official confirmation that Wang Danhao is the individual referenced in this case. Any important updates will be added here as more information becomes available.
UPDATE April 3:
A news report by local news website MLive has come out earlier today, including additional information on this case.
In an April 1 email, Deputy Police Chief and Public Information Officer Melissa Overton stated that the researcher “jumped from the third floor and fell to the second floor inside the atrium in the George G. Brown Building on March 19.” He was later pronounced dead, and police — first called about 11 p.m. on March 19 — are investigating his death as a “possible act of self-harm.”
Paul Corliss, assistant vice president for public affairs and internal communications at the University of Michigan, has also issued a statement in an April 3 email, writing that: “Our priority is to honor the wishes of the family and those affected while adhering to legal requirements and ensuring that any information shared is accurate and non-speculative.”
An earlier internal email, sent out to the Michigan Engineering community on April 1, confirmed the passing of Wang Danhao (Dr. Danhao Wang), and stated that there is an active police investigation going on, with no further information to share.
The statement described him as “a promising and brilliant young mind,” whose research into wide bandgap III-nitride semiconductor materials and devices published in Nature “stands as a landmark, uncovering for the first time the switching and charge compensation mechanisms of emerging ferroelectric nitrides.”
The UM Postdoctoral Researchers Organization, the union that represents postdoctoral researchers, is advising its membership not to speak with federal authorities.
If you or someone you know is struggling, international mental health and crisis support helplines can be found at www.befrienders.org.
By Manya Koetse
(follow on X, LinkedIn, or Instagram)
Note: In Chinese, names are written with the surname first, followed by the given name (e.g. Wang Danhao, Mi Zetian). In English-language contexts, this order is usually reversed (e.g. Dr. Zetian Mi, Dr. Danhao Wang).
©2026 Eye on Digital China/Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.
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