China's new export controls target AI tech transfers, but API use and open-source models are exempt. European firms must declare operations involving restricted tech.
Chinese export controls exempt API access to certain models
According to the Ministry of Commerce, European companies using models like DeepSeek, Qwen, or GLM via API or hosting open-source weights are not affected by the new export control measures. This exemption applies to operations that do not involve moving restricted technology out of China.Export controls target technology transfer
The new rules, outlined in Announcement No. 48 from October 16, focus on operations that involve taking technology out of China, such as licensing non-public versions, acquiring companies or technologies, and deploying restricted models on foreign servers. These actions require declaration by the Chinese publisher.40 technologies under consultation
The announcement, signed by the Ministry of Commerce and the Ministry of Science and Technology, lists 40 technologies for possible export restrictions or bans. These include 23 in AI, 5 in biomedical engineering, and 12 in photovoltaics. The consultation period runs until November 15, 2026.Open-source technologies excluded
According to the announcement, technologies already in the public domain through open-source licenses, scientific publications, or other means are not subject to the export controls. This includes weights published under open-source licenses, though proprietary licenses are not clearly defined.API use not subject to export control
The spokesperson clarified that using restricted AI models via API, web pages, or SaaS does not fall under export control. However, localized deployment of these models abroad is considered within the scope of export management, though automatic licenses may apply under certain conditions.Three criteria for restricted AI models
The annex, which details 23 AI technologies, includes criteria such as training calculations, model size, and global rankings. Models like Qwen3.8-Max and Kimi K3 meet these thresholds, though the exact details of the annex are not publicly available.European companies face different challenges
For European companies, the rules focus on how they access and use Chinese models. Using models via API or open-source weights is not restricted, but acquiring or licensing non-public Chinese technology requires prior declaration. This affects contracts and data handling practices.Data and licensing concerns remain
The export controls do not address data handling or licensing requirements for models like DeepSeek-V4.1-Flash-1017 and GLM-5.3. These models have specific licensing terms, and data collected by Chinese companies may be subject to Chinese law, raising compliance issues for European users.U.S. and Chinese regulations differ
The U.S. recently restricted access to certain models for federal agencies, while China's new rules focus on technology transfer. These differing regulations affect how European companies navigate compliance with both sets of rules, particularly in contracts and data management.