In Depth: TV Industry Hopes for Dramatic Growth After Beijing Loosens Grip

China has enacted major regulatory reforms in its television industry, marking the most significant policy loosening in nearly 20 years. These changes, announced on August 18 by the National Radio and Television Administration (NRTA), aim to revive an industry that has been beset by draconian restrictions, dwindling investment, and falling viewership. Long-standing rules around historical dramas, episode counts, and release schedules are being relaxed, mid-program advertising is returning, content approval will be sped up, and some regulatory powers are being delegated to local stations. The reforms are intended to nurture a richer array of television content and provide a much-needed boost to state broadcasters and independent studios alike [para. 1][para. 2][para. 4].

The TV industry has been on a downward trajectory due to years of intensifying regulation, competition from new digital formats, and the rise of online streaming. The cumulative effect has led to a five-year decline in TV drama releases. The market responded positively to the new policies—shares of media companies such as Beijing Baination Pictures and Zhejiang Huace surged on the A-share market following the reform announcement [para. 3][para. 6]. Some changes are already visible: the prime-time drama “This Thriving Land” is now airing three episodes a night, surpassing previous limits, and sequels like “Flourished Peony” are premiering without the formerly mandated year-long hiatus between seasons [para. 7].

A crucial policy shift is the relaxation of restrictions on historical and costume dramas. This genre, once a commercial powerhouse, had long suffered under tough regulation due to accusations of historical distortion and decadent content. Since the early 2010s, these dramas faced removal from prime-time slots and heavy censorship. The NRTA's most recent relaxation has led to a surge in approvals; in the first half of the year, new costume dramas nearly matched all of last year’s total, suggesting pent-up titles may soon flood the market [para. 10][para. 13]. The end of the 40-episode cap (introduced in 2020 to fight cost inflation and audience fatigue) and the return of mid-program advertising further signal a more commercial approach [para. 15][para. 18].

Genre diversification is also encouraged. Crime, legal, and investigative dramas had been heavily censored, but now only highly sensitive topics will require clearance from top authorities. Faster review times should spur smaller studios' creativity [para. 21][para. 25]. The NRTA is also supporting the import of high-quality foreign shows and encouraging the adaptation of such content, provided it meets political criteria [para. 27].

To reduce bottlenecks, the NRTA promises to accelerate content reviews, from 50 to 30 days, and to trial simultaneous script review and broadcast for certain projects, echoing international production models. This aims to enhance flexibility and timeliness in the industry, though will likely benefit only large-scale productions [para. 29][para. 33].

Despite these positive steps, dominant streaming platforms like iQiyi, Tencent Video, and Youku are tightening their own oversight as they face financial strain and new trends. iQiyi swung to a loss in 2025; Tencent Video recorded a drop in paid subscribers. Platforms now cap long-form drama production, demand more content upfront, and are shifting greater risk and lower profits onto content producers [para. 34][para. 40][para. 44][para. 47].

The industry is also under threat from “micro-dramas”—short-form, mobile-focused stories delivered in minute-long episodes—which are quickly eroding the long-form television market. Platforms led by ByteDance's Hongguo Short Drama are drawing away younger audiences with high volumes of easily digestible content, fueling speculation that long-form dramas may ultimately become a niche product alongside dominant micro-dramas [para. 50][para. 54][para. 56][para. 58].