NANNING, April 2 (Xinhua) -- In the world of Chinese mini-dramas -- the addictive, vertically shot serials that pack romance, revenge and rags-to-riches plots into fast-paced one-minute episodes -- a mysterious metropolis known only as "City A" has become the genre's classic backdrop.

To millions of viewers, its gleaming skyscrapers look like any typical Chinese urban setting. But for locals in Nanning, capital of Guangxi Zhuang Autonomous Region, the curiosity fades quickly -- "City A" is clearly their own backyard, from the iconic river park to the rice-noodle stalls on every street corner.

Guangxi, a border region long known for sugar production and its growing role as China's gateway to Southeast Asia, is now playing a more active part in the country's booming digital entertainment economy.

By combining subtropical geography, government subsidies and rapid adoption of artificial intelligence (AI), Nanning is on track to rival Zhengzhou in central China's Henan Province, which has a strong mini-drama industry.

The city's rise as a production hub started with a simple climatic advantage. In late 2023, as northern Chinese cities turned gray and barren in winter, directors such as Zhou Jiuqin headed south in search of year-round evergreen urban backdrops. Nanning, a leafy city with average winter temperatures around 20 degrees Celsius, offered a reliable year-round shooting window.

"The city is extremely well-suited for the aesthetic of modern urban dramas," said Li Nanxiao, a graduate of the Central Academy of Drama who returned home to launch a film-service startup in Nanning around 2022. Her company, which hosted more than 30 film crews last year, has seen a sharp increase in business volume.

Shanhai Group, a local company founded in May 2023, also rode this wave. To date, it has built a core team of over 1,000 people and gained access to 10,000 shooting locations across the country.

Its output has been impressive. The firm now produces more than 60 mini-dramas per month, with monthly box-office revenue exceeding 350 million yuan (about 48 million U.S. dollars).

This domestic momentum is matched by its expanding global reach. The company's overseas platform, Stardust TV, has exported more than 10,000 series in 14 languages to over 200 countries and regions.

"We chose Nanning for the strong policy support for emerging cultural industries," said Zhou Peijin, founder of Shanhai Group.

Last year, Guangxi rolled out a special action plan offering subsidies of up to 4 million yuan for mini-drama companies. So far, Nanning has come to host about 90 percent of the region's licensed media production companies.

Beyond its geographic advantages, technology is another key factor boosting Nanning's competitive edge. The industry has reached a turning point, as AI starts to reshape the economics of filmmaking.

Inside a film base run by a local state-owned high-tech investment enterprise, a 3,950-square-meter AI virtual studio is already capitalizing on the trend.

Using high-resolution LED walls and real-time rendering, crews can now switch instantly from a snowy mountain to a cyberpunk cityscape, slashing time-consuming location shoots and post-production.

"It is estimated that filming cycles can be reduced by 40 percent," said Mao Zhigang, head of the parent company operating the Nanning film base. "We are moving away from green-screen compositing and last-minute reshoots to creating every scene live in real time and locking it in before cameras roll."

At the offices of Guangxi Yaoxiang Cultural Communication Co., Ltd., specialists use AIGC to automate the most labor-intensive stages of production.

"In Cambodia, we recently launched a digital platform featuring 'real-person' AI likenesses of popular local singers and models," said Huang Xi, a senior technology executive at the firm. "Unlike traditional films, the characters, scenes and shots are entirely synthetic."

The firm is also using AI to translate and localize Chinese mythology and Guangxi's intangible cultural heritage, Huang added.

Industry data show that a traditional 80-episode live-action mini-drama costs 300,000 yuan to 500,000 yuan to produce, while an AI-assisted version can be made for as little as 20,000 yuan. In some cases, the cost of building complex sci-fi sets has dropped by up to 90 percent.

What truly makes Guangxi stand out is its connectivity with ASEAN markets. Rather than simply dubbing domestic hits, many producers here use the city as a transit station for cross-border productions.

The recent premiere of Sawatdee Krab -- Adventure in Thailand, a 10-min drama jointly developed by a Guangxi local TV station and its Thai partner, featured Thai writers and actors from the start of script development to ensure cultural authenticity.

Ji Li, vice-president of Shanhai Group, said the export strategy has evolved quickly.

"Our original approach was simple -- translate domestic hits for overseas platforms. But we soon hit obstacles," Ji said. "Now we bring in foreign creators and expand our overseas writing teams to ensure content truly resonates in markets like North America and Southeast Asia."

The financial stakes have grown far beyond a niche market. Official data show that in 2025, China's mini-drama market had surpassed 100 billion yuan -- nearly double the national cinema box office. As of June 2025, the market had 696 million users in China, roughly 70 percent of the country's netizens.

"Mini-dramas are ideal for cross-cultural exchange between China and ASEAN countries," said Lu Zhengning, deputy head of the regional radio and television bureau. "They are light, fast-paced and easy to resonate with across borders."