China proposes export controls on AI, solar and biopharma amid rising trade tensions with West

The Independent

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Beijing says policy not aimed at targeting any particular country or entity

An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai
An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai (Reuters)
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China on Friday proposed adding AI, biopharmaceuticals and photovoltaic technologies to its export control list, amid simmering trade tensions and intensifying competition with the West.

The proposal by the ministries of commerce and science and technology adds 40 technologies to the list. The government is asking the public to offer their views on the proposal until 15 November.

The proposal covers 23 AI technologies, including large language models, intelligent agents and computing clusters, which are ‌the three fundamental building blocks of the nation’s AI industry.

It also includes cell and gene therapies, small nucleic acid drugs, and technologies related to the production of polysilicon, silicon wafers and solar cells.

However, technologies that are already in the public domain through open-source releases will stay exempt from the restrictions.

The ministries clarified that the proposal was not aimed at targeting a particular country, region or entity, but part of routine technology trade management.

China ⁠is simultaneously implementing interim pre-export registration ​management ⁠for relevant technologies. The registration requirement, which came into effect on Friday, covers transfer of technology ownership and licensing agreements with overseas entities. It also applies to export transactions that are already underway but yet to be completed.

The proposal comes at a time ⁠of China’s increasing competition and geopolitical tensions with the US.

Beijing said the revision was proposed as applications of ‌related technologies in sensitive fields were constantly expanding.

"In recent years, AI, biopharmaceutical and photovoltaic technologies have increasingly been applied in sensitive areas, prompting major economies to impose varying degrees of export controls," it said.

The proposal aims to "mitigate the risks of technologies falling out of control or proliferating inappropriately while ensuring normal international technology exchanges and cooperation”.

On 1 July, China started implementing new rules that significantly tighten controls on overseas investment and outbound transfer of technology, data, and related expertise. This followed a legal dispute over Meta’s $2bn deal to buy Chinese autonomous AI agent Manus. China blocked the acquisition on national security grounds.

The US, Europe and Japan are also enforcing tech export controls that are seen as being primarily directed at China. The restrictions cover technologies such as semiconductors and semiconductor manufacturing equipment.

Beijing, in retaliation, is enforcing export controls on critical minerals.

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