China Proposes New Export Controls on Artificial Intelligence Technology
China has proposed strict Chinese AI export controls to restrict foreign ownership of model weights and underlying code.
China Proposes New Export Controls on Artificial Intelligence Technology
China has proposed strict Chinese AI export controls to restrict foreign ownership of model weights and underlying code.
Proposed Framework for Chinese AI Export Controls
China's Ministry of Commerce (MOFCOM) alongside the Ministry of Science and Technology (MOST) introduced draft export rules on October 16, 2026, aimed at restricting international access to core artificial intelligence software and technical expertise. The proposal for Chinese AI export controls focuses on keeping model weights, training data, and foundational know-how onshore while permitting foreign clients to utilize services through web interfaces, applications, and cloud platforms.
The proposed regulatory changes involve a draft revision to the Catalogue of Technologies Prohibited and Restricted from Export. According to Reuters, the update introduces 40 technologies across three main sectors, comprising 23 artificial intelligence technologies, 12 photovoltaics technologies, and 5 biomedicine technologies. Out of the 40 items, 14 face a complete export ban, while the remaining 26 require government licenses before export.
Technical Thresholds and Impact on Overseas Deployments
The draft zeroes in on essential technologies like large-model weights and training optimization. Controls target advanced systems that hit specific technical thresholds, notably models trained using at least 10²⁶ FLOPs of compute or systems containing 2 trillion parameters.
Under the proposal, foreign developers accessing Chinese models via application programming interfaces (APIs) or subscribing to cloud services remain exempt from export restrictions. However, foreign acquisitions of underlying assets, ownership changes, or international regional deployments face strict government oversight. A MOFCOM spokesperson cited national security concerns and misuse risks as key reasons for tightening controls, while noting that projects aligned with open-source initiatives may qualify for automatic licensing.
Implementation Timeline and Industry Scope
An interim registration requirement took effect on October 16, 2026, when the draft rules were announced. Public comments on the proposal remain open until November 15, 2026, with final regulations expected by the end of the year.
For Chinese artificial intelligence companies, the proposal largely codifies established industry practices of selling subscription access abroad while retaining physical custody of core software and data within China.
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