China cracks down on deepfakes, sets rules for AI short film industry.

China's regulations on AI deepfakes come amidst the rapid growth of its short film industry, highlighting the need to build a legal framework alongside technological development – ​​a key focus of Resolution 57-NQ/TW.

In September, China's Supreme People's Court issued regulations on the adjudication of disputes related to artificial intelligence (AI), addressing issues of public concern such as face swapping, voice copying, and the misuse of AI-generated deepfake technology. This move is expected to contribute to the completion of the legal framework for China's rapidly growing online short film industry.

Industry and legal experts quoted by the Global Times believe that the new regulations could help curb copyright and personal rights infringements, and significantly impact the short film industry, where AI is increasingly used in content production.

Lawyer Wu Xiaolin in Beijing said the Supreme People's Court 's new judicial guidance marks a step forward in defining legal criteria for disputes related to AI-generated short films. He noted that the provisions on personal rights in China's Civil Code are directly applied to determine limits on the use of AI-powered deep synthesis technology.

He argued that previously, some key management requirements were primarily expressed in the form of administrative regulations, while the new regulations provide a basis for courts to apply specific legal principles when resolving disputes.

China's short film market has grown rapidly in recent years, generating significant revenue and becoming a notable cultural export product.

At a press conference on September 17th regarding the implementation of the 15th Five-Year Plan, Wang Xiaoliang, Director of the Cyberspace Audiovisual Program Management Bureau under the National Radio and Television Administration of China, stated that the number of short film users in the country has exceeded 800 million. By 2025, the short film market size is projected to surpass 1 trillion yuan (approximately 140 billion USD).

Notably, in the first eight months of 2026, China released approximately 430,000 short films, 13 times the total number released in all of 2025. More than 90% of these utilized AI technology in their creation or production. According to Wang Xiaoliang, AI is transforming the way content is expressed, while also contributing to reduced costs and improved production efficiency.

However, this rapid development has also led to disputes related to copyright and personal rights.

The negative consequences for people from these actions are becoming increasingly clear. Chinese media reports that many famous stars have repeatedly spoken out to defend their rights, as a series of short films using AI technology have exploited their images through "face swapping" and "face simulating" techniques to capitalize on their popularity.

According to Feng, much of this type of content operates on the principle of attracting traffic rather than traditional revenue-sharing models, thereby avoiding some of the usual content moderation processes.

He argued that the short film market has long been affected by unfair competition, where low-cost AI-generated products are mass-produced, putting pressure on creators to invest in original scripts, real-life filming locations, and licensed actors.

Feng believes the new regulations will primarily impact low-quality, speculative content that prioritizes traffic, rather than small and medium-sized studios that operate creatively and in compliance with the law .

However, practical implementation still faces many challenges. The increasingly sophisticated AI-generated images and altered voices make identifying violations complicated. Meanwhile, the large volume of short films being produced and circulated also makes it difficult to gather evidence and determine responsibility.

Industry analyst Zhang Peng believes the new regulations could increase the cost of infringement, thereby impacting business models that rely on mass-producing AI-powered short films to attract traffic.

According to Zhang, traffic and advertising budgets may gradually shift towards original, regulatory-compliant works, thereby improving the standing of genuine creators. However, he believes the effectiveness of this shift depends significantly on how platforms enforce regulations and how courts apply the new standards.

Mr. Zhang emphasized that the new regulations are not intended to prohibit the legitimate application of AI. AI tools can still be used to assist with scriptwriting, post-production, and voice-over. The issue lies in using the technology to infringe upon the legitimate rights and interests of others.

According to him, judicial sanctions alone cannot solve the problems of the short film industry. To improve content quality and restore public trust, coordination between platforms, regulatory agencies, and the industry's self-governing mechanisms is needed, along with the development of high-quality works with social value.

Along with strengthening the management of production activities, China has also stepped up its crackdown on infringing content. Since the beginning of 2026, the country has dealt with harmful, vulgar, inappropriate for children, and copyright-infringing content, removing a total of 68,000 films and penalizing more than 1,200 accounts for violating regulations. Notably, over 90% of the content that was dealt with was AI-generated.

Drawing from China's experience, building a legal framework alongside AI development is a matter of significant reference for Vietnam. Resolution 57-NQ/TW of the Politburo identifies institutions, human resources, infrastructure, data, and strategic technology as key components in the development of science, technology, innovation, and digital transformation ; it also emphasizes the need to ensure cybersecurity, data security, and information safety. In the context of increasingly widespread AI applications, simultaneously promoting innovation, mastering technology, and perfecting institutions to protect the legitimate rights and interests of citizens will be crucial requirements in Vietnam's AI development process.

Source:

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