China Considers Tightening Controls On Export Of AI, Chips

China is exploring tightening export regulations on artificial intelligence models and chip technologies to protect the flow of advanced indigenous technology overseas.

China is contemplating implementing tighter export controls on artificial intelligence models and semiconductor technologies as it works to prevent its most advanced domestic innovations from leaking abroad. 

The proposals signify China’s increasingly stringent view of advanced AI as a critical national asset, according to the Financial Times, as reported by Reuters.

The FT stated that the Chinese Ministry of Commerce has engaged with domestic AI developers and chipmakers in discussions about measures that would keep promising start-ups and cutting-edge technologies from being bought by overseas firms. Other considerations discussed include placing restrictions on the transfer of critical data for AI training out of the country and preventing foreigners from downloading model weights from Chinese corporations.

According to the report, regulators are also seeking industry opinions on potentially imposing rules that would restrict foundries abroad like Taiwan’s TSMC and Qualcomm from manufacturing complex semiconductors using designs developed by Chinese technology firms, including Huawei, Alibaba, and ByteDance.

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Any such regulations could be introduced as part of China’s upcoming updates to its technology export restriction catalog. The report added that limitations on the purchase of strategic technologies abroad, which include agentic AI, are also under discussion.

In early June, Reuters reported that Chinese authorities had been discussing imposing restrictions on foreign access to the country’s most advanced AI models. However, authorities from the Commerce Ministry and companies mentioned in the article were not immediately available for comment, while the proposals are still under evaluation prior to a definitive decision being made.

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Gayathri M
Gayathri M
Gayathri M is a Senior Business Journalist at Electronics For You (EFY), covering business, technology, and innovation. She holds a Master's degree in English Literature, has presented research papers at national and international conferences, and is the author of a book.

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