On March 3, the topic "Hongguo Suspends Numerous Projects" gained significant attention online. According to market sources, Hongguo Short Drama has recently suspended multiple live-action short drama projects in bulk. The platform has also adjusted its partnership policies, canceling certain guaranteed revenue-sharing agreements and tightening external script submission and review standards. As a result, many small and medium-sized production partners have seen their projects halted.

Market analysts suggest the adjustments address key industry challenges, including the high costs of live-action short dramas, severe content homogenization, and declining profitability. In response, platforms are shifting toward higher-quality productions and AI-generated short dramas, prioritizing collaborations with top-tier producers while scaling back support for smaller service providers. This shift has placed financial pressure on producers reliant on guaranteed income, signaling a consolidation phase within the industry.

As of the time of reporting, Hongguo has not issued an official response to these developments.