China Introduces Draft Export Rules to Restrict AI Technology Access

On October 16, China unveiled draft export rules designed to restrict foreign companies from acquiring essential artificial intelligence technologies. The proposal, issued by the Ministry of Commerce (MOFCOM) and the Ministry of Science and Technology (MOST), aims to maintain control over AI systems while allowing foreign users to access these technologies through services.

The draft revision to the Catalogue of Technologies Prohibited and Restricted from Export includes 40 technologies across three sectors, with 23 specifically related to artificial intelligence. Notably, 14 of these technologies would face an outright export ban, while the remaining 26 would require a license for international transfer.

The rules focus on critical AI components, such as model weights and training optimization, particularly for systems that meet certain performance thresholds. This approach distinguishes between foreign companies using Chinese AI services and those seeking to acquire the underlying technology.

MOFCOM cited national security and the risk of misuse as primary motivations for these tighter controls. The draft reflects a broader trend of technology rivalry between China and the US, as both nations impose restrictions on advanced technologies.

Public comments on the draft are open until November 15, 2026, with final regulations expected by the end of the year. The implications for Chinese AI firms appear significant, as they will continue to offer services without relinquishing critical technology, while foreign companies may face a more complex licensing process.