China Proposes Draft Export Controls on 40 Technologies, Including 23 in AI

China has announced draft rules to control the export of 40 strategic technology systems, 23 of which are directly linked to artificial intelligence, in a move that could test the fragile trade truce with the United States. The draft includes AI chips, large language models, solar energy, and biotechnology.

Beijing stated that the step aims to prevent the misuse of these technologies, clarifying that most remain exportable without heavy restrictions and that licensing procedures will be simplified. The draft will accept public feedback until November 15, 2026, after which China will issue the final version of the controls.

Leonhard Xu, senior advisor at Berlin-based consultancy Sinolytics, said that "the announcement is very broad and evaluating its implications will take time," adding that registration requirements "begin immediately, even for exports that have already started shipping," and that export controls "in most cases do not mean an export ban."

Lawyers say the controls extend to certain cross-border intellectual property transfers, licensing arrangements, and changes in ownership or control of domestic technology by foreign entities, requiring cross-border companies to evaluate whether their transactions require new registration.

What do these terms mean?

Export Controls: Rules imposed by a country on the sale or transfer of specific goods and technologies abroad, aiming to protect national security or competitive advantage.

Large Language Models: Artificial intelligence programs trained on massive amounts of text capable of understanding and generating language, such as ChatGPT.

Intellectual Property: Legal rights protecting a creation, invention, or trademark, such as patents and copyrights.