China’s mulling export controls for AI tech

China’s getting into the AI export-control game. Beijing proposed export controls on Friday covering 23 AI technologies, from AI models to the massive computer systems that run them, Reuters reports.

The move comes as the US has put significant controls on which nations can buy its most advanced AI chips and other technology, partly to keep the technology out of Beijing’s hands, so the US can stay ahead in the AI race.

A big exception: The Chinese rules don’t cover people using AI through apps, websites, or online services, China’s commerce ministry says. TL;DR: That could let Chinese AI companies like DeepSeek and Alibaba keep expanding abroad while Beijing keeps a closer eye on its most sensitive tech, Reuters says.

The Gulf angle: One of the companies Beijing has discussed limiting overseas access to is Z.ai, Reuters reported in July — Aramco’s venture arm, Prosperity7, is an investor.

Keeping it out of the wrong hands: Beijing is especially worried about AI being misused to build hacking tools that could attack critical infrastructure, the ministry says. Related: China’s Tencent said on Friday that its AI agents acted in an unintended way while evaluating third-party models, the first acknowledged case of Chinese AI going rogue, per Reuters. Tencent’s statement followed a report by the AI-safety research group Swarmchasers detailing the incident.

Chinese models have been winning fans overseas ever since DeepSeek’s R1 burst onto the scene early last year. They’re often cheaper than US alternatives. Many MENA users also appreciate China’s open-weights models, which are easier to run locally without violating national regulations about keeping regulated data inside the country.

What’s next? The rules aren’t final yet. Beijing is taking feedback until 15 November. But companies already have to register some tech transfers abroad as of Friday, Reuters says.

MEANWHILE, in Taipei: Taiwan plans to make it a crime to ship restricted AI servers and top-end chips to China, partly to match US rules under its trade deal with Washington, Bloomberg reports.