Between Boom and Regulation: Economic Impacts and Policy Challenges of the Rapidly Expanding Micro-drama Industry

The micro-drama industry in China has emerged as a significant economic and cultural force, characterized by rapid market growth, transformative impacts on consumer behavior, and substantial influence on cultural dissemination. This study explores the industry's economic contributions, its role in shaping cultural identity, and its effects on social values, while navigating a dynamic regulatory landscape aimed at fostering sustainable development. Through a comprehensive literature review and empirical analysis, this paper examines the strategies driving the creation and dissemination of micro-dramas, their diverse impacts, and the challenges of content homogenization and ethical concerns. Findings indicate that micro-dramas significantly enhance China's digital economy, create jobs, and promote cultural heritage, but they also risk propagating harmful values like materialism and gender stereotypes. Recommendations are provided for sustainable growth, emphasizing regulatory refinement, industry self-regulation, and media literacy to balance commercial success with cultural and social responsibility.