Fictional characters generated by artificial intelligence are spreading massively on Chinese short-video platforms, prompting elderly viewers to make purchases under the guise of poverty and hardship. According to the SCMP, these virtual personas, collectively known online as "Xiaohai," appear as teenagers in school uniforms or plain white shirts, crying on camera and recounting their destitution. Addressing the audience as "aunts and mothers," the characters share fabricated stories: in one video, a heroine holds a steamed bun and laments having to hide in the classroom to eat while her classmates are away at lunch; in another, a boy in the rain begs viewers to buy buckwheat porridge to meet his sales quota and avoid peer mockery.
Manipulation Mechanics and Inflated Prices
The emotional presentation is followed by a commercial pitch: "Xiaohai" characters promote dietary supplements, household goods, and food products, claiming they need the money to support single fathers. Meanwhile, the prices of the offered goods are reportedly significantly inflated. For example, a bottle of cooking oil sold through Xiaohai accounts for 99 yuan (approximately 390,000 dong) allegedly costs about 60 yuan (approximately 237,000 dong) on the wholesale market. Commission fees on platforms reach up to 55%, allowing account owners to generate substantial profits. An industry insider speaking to Beijing News reported that content creators using accessible AI tools to generate Xiaohai-style videos are capable of earning between 2,000 and 3,000 yuan (about 7.9–11.8 million dong) per day.
Scale of the Phenomenon and Audience
The "Xiaohai" trend has spread rapidly across Chinese short-video platforms, with total views of thematic videos exceeding 600 million. The primary subscriber base consists of middle-aged and older individuals who express sympathy for the fabricated stories in the comments and make purchases out of a desire to "help" the characters. As of October 2026, the majority of videos related to Xiaohai have been removed from platforms, though exact statistics on the total funds earned by content creators have not been publicly disclosed.
Real-World Consequences: The Urumqi Incident
One of the most telling episodes was an incident in Urumqi recorded in May 2026. Police stopped a 79-year-old illiterate woman who was traveling alone on a train and insisting she was heading to Shanxi province in northern China to meet "Xiaohai" in person. The elderly woman explained that during a livestream, the character had invited her to eat mushrooms and admire flowers. Law enforcement contacted her family, brought the woman home, and explained that the boy on the screen was a fictional creation generated by a neural network. This case vividly demonstrates the deep trust elderly viewers place in virtual characters.
Legal Assessment and Expert Opinions
Lawyers warn that intentionally fabricating stories to boost online sales can be classified as fraud. At the same time, Professor Ma Liang from Peking University offers a different perspective: in his view, the "Xiaohai" phenomenon reflects a social reality in which some elderly people, experiencing chronic loneliness, turn to online shopping and virtual characters to fill an emotional void. Thus, behind the commercial scheme lies a deeper problem of social isolation among the older generation amid rapid societal digitization.
Counter-Activism and Content Removal
In response to the spread of manipulative videos, some tech-savvy users have begun using AI to create content featuring so-called "evil Xiaohais." In these videos, the character appears in prison garb and apologizes to fans, or alternatively sports expensive designer clothes, smokes, and boasts about exploiting "women and mothers." Such videos are intended to help parents and grandparents realize that behind the idealized image of a poor teenager lies a commercial scheme. Simultaneously, short-video platforms have begun mass removal of original Xiaohai clips, though the issue of systematic countermeasures and criminal liability for the organizers remains open.
