Scaling stories

From the popularity of xianxia (immortal heroes) fiction in Southeast Asia to the emergence of overseas writers such as Nigerian author Lilac Everglade on WebNovel, Chinese online literature has undergone genuine international expansion. Over the past two decades, it has moved beyond the simple act of reading to become a global phenomenon, attracting millions of foreign readers with stories rooted in Chinese culture. Its original model, later adapted into web series, animation, and video games, is reshaping the broader entertainment industry. 

According to the 2025 Report on the Development of Chinese Online Literature recently published by the Chinese Academy of Social Sciences, the sector's international reach has achieved a new milestone: in 2025, overseas turnover hit 5.64 billion yuan ($834.63 million), with nearly 200 million active readers across more than 200 countries and regions. 

What transformation underlies this remarkable growth? What challenges must be addressed, and what impact will artificial intelligence (AI) have on the sector? 

Building a new global ecosystem 

Following the May Fourth New Culture Movement more than a century ago, China long occupied the position of "disciple" on the world cultural stage. However, the rise of the internet has created a new opportunity for Chinese cultural development, enabling the emergence of a dynamic ecosystem around online literature. 

At the core of this system are continuous interaction and the fluid circulation of content: authors publish serially, while readers participate in a form of "co-creation." In addition, chapter-by-chapter monetisation has enabled a sustainable economic model. Platforms further amplify successful works by adapting them into films, television series, or animations. 

This production model is now being exported and studied worldwide. WebNovel, an international reading platform, has attracted more than 1.3 million foreign writers. In the audiovisual sector, the rapid rise of the ReelShort mini-series platform in North America has drawn attention to its fast-paced format and tightly constructed storytelling. 

This marks a symbolic turning point: Chinese web fiction and its production model are no longer mere followers, but have become pioneers in global digital creation. 

While some once feared that culturally specific concepts, such as "immortal cultivation" or "initiation trials," might hinder international dissemination, experience has shown the opposite. These distinctive elements often spark curiosity among foreign readers. This suggests that universal human emotions and values remain the primary drivers of cross-cultural resonance. In this sense, an Eastern narrative sensibility may be one of its greatest strengths. 

End of the click race 

Despite strong growth, the sector faces significant challenges and is undergoing structural transformation. 

The first challenge is the exhaustion of the existing economic model. To expand into international markets, web novels and short-form dramas have relied heavily on intensive social media marketing to attract users. As global competition intensifies, these advertising costs are rising sharply, eroding margins and pushing the industry towards more diversified and sustainable growth strategies. 

At the same time, a shift towards standardisation and quality has become essential. To address content redundancy, a common issue in emerging digital sectors, the industry is moving away from the "click race" towards higher-quality development. 

Public policy is reinforcing this trend. Strengthened regulatory mechanisms and increased platform accountability reflect efforts to balance industrial support with higher standards. According to the report, China's web novel copyright adaptation market reached 367.61 billion yuan ($54.4 billion) in 2025, a scale that naturally demands higher creative and production quality. 

This evolution is already visible. Works such as Binjiang Police Chronicles (Bin Jiang Jing Shi) and China's Great Industrial Projects (Da Guo Zhong Gong) have received recognition at major awards, including the China Publishing Government Award. These accolades indicate that the artistic value and social recognition of Chinese web fiction are rising. 

What AI cannot create 

AI is a major disruptive variable, functioning as both an opportunity and a challenge. 

On the one hand, AI is a powerful production tool that can significantly reduce costs and improve efficiency. According to the report, the WebNovel platform alone has already used AI to translate more than 17,000 works, accelerating cross-language circulation. On the other hand, this technological shift will likely accelerate the elimination of highly standardised, low-value-added content. If creators simply reproduce formulaic and unoriginal patterns, they risk being replaced by technology. 

What, then, is the irreplaceable essence of human creativity? One answer is the "consciousness of the living." 

True cultural creation will always belong to humans. It arises from lived experience, complex emotions, and free imagination. Literature and art are rooted in human finitude - in our awareness of love and death, joy and pain, infinity and limitation. AI does not know the fear of death or the intensity of love. It cannot truly grasp a creative impulse shaped by this "consciousness of the living."

Technological progress should therefore be understood as liberation: it frees creators from repetitive labour. Writers need not panic, but instead return to what is essential - exploring individual experiences that no algorithm can replicate. It is precisely when AI exhausts existing models that the value of human originality will become most evident. 

Chinese online literature has achieved remarkable global expansion, but its development is still ongoing. Evolving business models, improving content quality, and preserving human creativity in the age of algorithms will define its future.