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After US, China eyes export restrictions on AI models and chips

After US, China eyes export restrictions on AI models and chips

China is reportedly in talks with companies like Alibaba, ByteDance, and Zhipu on how they can limit the overseas transfer of sensitive AI assets.

Business Today Desk
Business Today Desk
  • Noida,
  • Updated Jul 21, 2026 4:16 PM IST
After US, China eyes export restrictions on AI models and chipsChina believes the move will reduce the risks of AI technologies being used or replicated by other countries.

After US AI cybersecurity concerns and restricted access to AI models, China is also considering stricter export rules for powerful AI technologies and semiconductors to other countries. According to a Financial Times report, China wants to keep the most advanced AI technology within the country as a strategic national asset. 

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It was highlighted that China's Ministry of Commerce is reportedly in discussion with Chinese AI and semiconductor companies about ways to protect AI models and technologies. The country also wants to prevent foreign companies from acquiring China's AI startups or gaining access to their AI technologies.

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Government officials are in talks with companies like Alibaba, ByteDance, and Zhipu on how they can limit the overseas transfer of sensitive AI assets. China is considering restrictions on training data being transferred outside the country, and AI model weights being downloaded by users overseas.

Why is China considering export restrictions on AI?

The report highlighted that China believes the move will reduce the risks of AI technologies being used or replicated by other countries. China is also reported to consider rules to stop foreign chip manufacturers like Qualcomm and TSMC  from making advanced chips based on Chinese-designed technology. This would help ensure that Chinese chip designs remain under the country’s control.

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As of now, the AI export restrictions have not been finalised yet, but it is anticipated to be added to China's official list of technologies that are banned or restricted from being exported. However, China is still gathering feedback from companies and the industry.

The US is also pursuing similar restrictions amid growing cybersecurity concerns, AI misuse, and risk of AI distillation by other nations. While China and the US tighten export controls on AI models, it also highlights the need for sovereign AI and domestic control over advanced AI capabilities.
 

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Business Today Desk
Business Today Desk

Business Today brings you the latest news, views and analysis from the world of finance, economy, markets, corporates, startups, tech, and the digital economy. You can find everything from breaking news to deep dives to immersive essays and more on a variety of subjects across all formats - online, magazine, television, data visualisation, et al.

Published on: Jul 21, 2026 4:16 PM IST