China targets AI tech exports

Beijing is working on new rules to control how artificial intelligence technologies are transferred abroad, focusing on restricting the export of 40 strategic technologies, including 23 related to AI. These technologies involve large language models, autonomous agents, semiconductor design, and computing infrastructure.

Public use not restricted

The proposed rules differentiate between transferring technology and using online services. Technologies already made public would be exempt, but the exact conditions for these exemptions are still being determined. The regulations aim to avoid restricting access to widely available knowledge.

Focus on commercial operations

The framework emphasizes commercial activities, such as licensing or transferring ownership of technologies to foreign entities. These actions can provide access to skills considered vital to national security. The rules will consider not only the nationality of customers but also what specific technologies are being transferred.

Technology access vs. transfer

Using AI tools through APIs, websites, or apps does not equate to acquiring the technology itself. For example, using a model’s functions does not mean a company has access to its underlying code or deployment methods. This distinction is important in determining what is subject to regulation.

Regulation timeline and process

The proposed rules are still under development, with a consultation period extending until November 15, 2026. A temporary registration requirement is already in place for certain technology transfers. The final rules will depend on feedback and further review.

Global export control efforts

China is not the only country regulating sensitive technologies. The United States, France, the Netherlands, and Japan have their own export control mechanisms. These vary by the type of product and the recipient, with some requiring authorization for specific exports.

U.S. export controls

In the United States, advanced processors and equipment are regulated, particularly when exported to China. Authorization may be needed depending on the product and the recipient. In January 2026, the U.S. revised its review process for export requests, maintaining a selective rather than blanket approach.

France’s dual-use focus

France focuses on dual-use goods—items that can be used for both civilian and military purposes. These exports require authorization. The framework is based on European regulations, allowing national measures to complement a shared list of restricted items.

Netherlands and Japan’s semiconductor controls

The Netherlands has strengthened its authorization framework for advanced semiconductor manufacturing equipment. Japan added 23 categories of chip manufacturing equipment to its controls in 2023, emphasizing regulation without a general export ban on all technologies.