China to Impose Restrictions on Tech Exports

China has proposed tighter controls on the overseas sale of forty technologies covering AI, semiconductors, solar energy, and other strategic industries, as competition with the U.S. and other Western economies continues to deepen. 

The proposed changes were released by China’s science and technology and commerce ministries as part of an update to the country’s list of technologies subject to export restrictions or outright bans. 

The commerce ministry said the measures were needed in part to protect national security. The announcement comes despite recent efforts by Beijing and Washington to cooperate on AI, including discussions about AI governance, safety, and a system for notifying each other about incidents that could pose security risks. 

The draft identifies 23 AI-related areas, ranging from autonomous AI agents to sophisticated foundation models. 

Under the proposed rules, China would prohibit overseas sales of technologies used to develop large AI systems trained on sensitive domestic datasets. Restrictions would also cover AI agents intended for particularly sensitive applications, including critical information systems and defense operations. 

The government said the controls are intended to reduce the risk of misuse while maintaining human oversight of advanced AI systems. 

Some highly capable AI models could face restrictions rather than a complete export ban. The proposal refers to systems with at least 2 trillion parameters, as well as models possessing certain capabilities considered globally advanced. 

Several Chinese AI developers have produced models that exceed the proposed threshold, including Moonshot AI and Alibaba, although the government document does not identify individual products. 

The draft also targets a number of semiconductor design technologies, including systems connected to AI processors and memory components. 

Solar manufacturing is another major focus, with 12 technologies included in the proposed controls. Some concern the production of polysilicon, an essential material used throughout the solar industry. 

Five technologies linked to biomedicine, including cell and gene therapy, are also covered. 

Analysts said the move reflects a broader shift toward national control over strategically important technologies. Lian Jye Su of Omdia said the proposal could be viewed partly as a response to Western governments introducing their own sovereignty requirements in fields such as telecommunications, AI, and robotics. 

The proposal follows years of U.S. restrictions limiting China’s access to leading AI processors and sophisticated semiconductor manufacturing equipment. The latest Chinese initiative could therefore add another layer to an already intensifying technology rivalry between the two countries. 

Tech firms like D-Wave Quantum Inc. (NYSE: QBTS) are likely to start growing increasingly concerned by the direction that the two governments are taking in a bid to prevent each other from accessing cutting-edge technologies.

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