China's Artificial Intelligence Export Restrictions and New Rules

Amid growing competition with the US in the field of artificial intelligence, China has unveiled a draft of new export restrictions aimed at keeping critical technologies domestically. While allowing foreign users to receive services through cloud platforms, the draft rules restrict the independent operation of core technologies and data, subjecting them to state authorization.

The draft rules released by China on October 16 draw a line between foreign customers using Chinese AI services and foreign companies acquiring models, data, or expertise to independently operate or replicate them. Alfredo Montufar-Helu from Ankura stated that the leadership is adopting a structure that keeps intellectual property and R&D domestic while selling operations and access abroad. The new regulations will broadly allow overseas users to access Chinese AI via websites and cloud platforms, while tying certain foundational technology transfers to government approval.