China has proposed new export controls targeting technologies involved in artificial intelligence (AI) and advanced chip design, according to draft rules issued jointly by the ministries of commerce and information technology on October 16. The measures reflect Beijing’s efforts to safeguard domestic AI advancements amid heightened competition with the United States.
The proposed regulations would restrict the export of leading AI models trained on sensitive Chinese data, as well as sophisticated AI agents used in critical sectors such as digital infrastructure, defense, and government services. In addition, the draft controls cover technology involved in designing advanced processing and memory chips, along with packaging and networking equipment.
China’s expansion of its export control list seeks to tighten oversight over the transfer of sensitive technologies overseas. Officials have identified a loophole exposed by the attempted acquisition by the US tech company Meta of the AI app Manus for $2 billion, a deal that Chinese authorities later ordered to be unwound. The draft rules are designed to prevent similar transfers of advanced AI technology from happening via foreign acquisitions or through the migration of key personnel.
The restrictions focus mainly on the technology underlying products, rather than the finished products themselves. Open-weight AI models—those that can be operated and customized by end users—would be exempt if they are publicly available and have not been trained on sensitive data. However, the draft rules allow for controls on such models if they exceed 2 trillion parameters or are ranked among the global leaders by performance. The number of parameters relates to the size of an AI model’s neural network and generally correlates with its capabilities. China’s AI start-up Moonshot released its K3 model earlier this year with 2.8 trillion parameters, drawing attention for its competitive performance relative to offerings from firms like Anthropic.
At the same time, the draft regulations include provisions for simpler approval processes to facilitate Chinese companies’ overseas activities such as building and operating AI data centers, manufacturing domestically designed chips abroad, conducting foreign joint research, and participating in international standard-setting. Major Chinese technology firms including ByteDance, Alibaba, and Tencent are actively expanding their data center footprints outside China, partly in response to restrictions imposed by the US and allied countries limiting their access to advanced chips within China.
China’s commerce ministry stated that the proposed curbs aim to “prevent the misuse of AI technologies,” underscoring concerns about controlling the outflow of strategically important technology.
Observers note that the draft export controls form part of a broader trend of states enacting measures to maintain technological leadership and address security risks in emerging fields such as AI and semiconductors. The rules remain in draft form and are subject to public consultation before being finalized.