Beijing is considering controls on 23 AI technologies, including advanced model weights, source code, computing clusters and AI agents, while preserving overseas access through cloud services.
China’s latest export-control proposal marks a significant turn in how Beijing treats artificial intelligence as a strategic technology. According to the draft issued on 16 October by the Ministry of Commerce and the Ministry of Science and Technology, the government is considering restrictions on 40 technologies across artificial intelligence, semiconductors, solar power and biomedicine, with 23 of those items tied to AI. The move goes beyond the country’s earlier focus on inward access to foreign systems and domestic governance of AI behaviour, and instead targets the transfer of Chinese AI intellectual property and infrastructure overseas.
The draft catalogue is notable for its level of detail. It would cover large language models, AI agents, computing clusters and chip-design methods, and it would place some of the most advanced systems under strict controls. Reporting by AP and Bloomberg said the proposal would apply to model weights and source code where performance thresholds are crossed, including models with more than two trillion parameters or those ranked among the world’s top 10 on performance and safety benchmarks. AI agents would also fall within scope when designed for sensitive uses such as national defence or critical information infrastructure.
The proposal would create a new compliance burden for firms handling Chinese AI assets, particularly in transactions involving ownership changes, licensing or cross-border technology transfers. Reuters-style reporting in the source material indicates that an interim registration requirement took effect on 16 October, even though the draft catalogue remains open for public comment until 15 November 2026. That means unfinished transactions already in motion are also subject to the new filing process. For companies involved in mergers, partnerships or hardware collaboration, the rules appear designed to slow or scrutinise the movement of strategic know-how as closely as the export of physical components.
At the same time, the draft leaves room for China’s leading AI firms to continue serving foreign customers through cloud-based channels. The proposal distinguishes between technology transfer and service access, and it exempts material already in the public domain through open-source releases or academic publication. API and software-as-a-service access are also said to remain outside the licensing regime. That carve-out matters for firms such as DeepSeek and Alibaba, which could continue to offer overseas users access to models via hosted interfaces while limiting redistribution of model weights or self-hosted deployment abroad. The wider effect is to mirror the export restrictions the United States has used against China for advanced chips and related technology, while extending the contest to the software layer of AI itself.
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