China proposes export controls on 23 AI technologies as rivalry with US deepens

China has proposed restrictions on the export of 23 artificial intelligence technologies, including systems involving advanced models, autonomous agents and computing clusters, as Beijing seeks greater control over technology transfers during intensifying competition with the United States. The proposal, announced by China’s Ministry of Commerce on October 16, 2026, forms part of a broader revision to the country’s technology export catalogue covering 40 technologies across AI, biotechnology and solar energy. The rules would introduce additional oversight for certain overseas transfers while preserving access to many Chinese AI products through ordinary online services.

The distinction is commercially significant because Chinese developers such as DeepSeek and Alibaba are expanding internationally through models and services that compete with American technology providers. China’s proposal would cover overseas deployment involving specified restricted technologies, but it excludes access through application programming interfaces, websites, apps and software-as-a-service platforms. Beijing has also indicated that many open-source technologies would remain outside the proposed restrictions.

The measures have not been fully finalised, with public consultation continuing until November 15. However, certain overseas technology transfers became subject to registration requirements from October 16 while authorities consider the final framework.

What AI technologies does China want to place under export controls?

The proposed restrictions cover 23 categories of artificial intelligence technology, including capabilities associated with AI models, software agents and advanced computing infrastructure. These categories reflect Beijing’s concern that particular technologies may have strategic applications beyond ordinary commercial use.

AI models can be distributed in several different ways. A provider might give a foreign organisation access to its underlying technology, deploy the system overseas or allow customers to use the model through a hosted service. These arrangements involve different degrees of technical access and control.

China’s proposed framework attempts to distinguish sensitive technology transfers from routine access to an online product. That distinction could allow Chinese companies to continue serving international users without granting them control over technology that regulators consider strategically important.

The precise obligations will depend on the final catalogue and licensing rules. A proposal to control a technology does not establish that every model or software product within the broader AI industry has become prohibited from export.

Will DeepSeek and Alibaba still be able to offer AI services internationally?

The Ministry of Commerce said the proposed restrictions would exclude access provided through APIs, websites, apps and software-as-a-service platforms. This creates a potentially important route through which Chinese AI developers could continue supplying international customers.

DeepSeek attracted worldwide attention through competitively priced AI models, while Alibaba has expanded its own AI offerings for business customers and developers. Both operate in an environment where access to overseas users can contribute to adoption, commercial revenue and the development of supporting applications.

A model available through an API is not necessarily being transferred in the same way as the underlying model technology or associated intellectual property. Beijing’s proposed distinction recognises that difference, though companies will still need to assess whether particular services or deployment arrangements fall within restricted categories.

The announcement therefore should not be described as a confirmed ban on DeepSeek or Alibaba operating outside China. It is a proposed regulatory framework that could change how selected technologies are transferred or deployed abroad.

Why is Beijing tightening AI export oversight during competition with Washington?

The United States has imposed restrictions affecting China’s access to advanced semiconductor technology used in developing powerful AI systems. Chinese companies have continued investing in models and computing infrastructure despite those constraints, creating competition over both technical capabilities and commercial markets.

China’s proposal addresses a different side of the technology supply chain: the potential transfer of sensitive Chinese-developed technology to foreign recipients. Beijing says one objective is to limit risks associated with AI systems that could autonomously generate or modify malicious software.

Advanced AI capabilities may support legitimate research and business applications while also creating security concerns when used to identify vulnerabilities or automate malicious activity. Governments consequently face pressure to balance commercial innovation with restrictions intended to reduce national-security risks.

China and the United States have also pursued limited cooperation on managing advanced AI risks, including discussions concerning human control over nuclear-weapons decisions. That cooperation exists alongside substantial economic and strategic rivalry.

What do the proposed restrictions mean for open-source AI models?

China has indicated that technology already publicly available through open-source releases or academic publications would generally fall outside the proposed export controls. Simplified licensing arrangements are also envisaged for certain open-source technology transfers.

That approach matters because open-source development has been a significant part of China’s AI expansion. Widely accessible models can attract developers and encourage companies to build services around Chinese AI technology.

However, the availability of model code or research papers does not necessarily resolve every export-control question. Related technical information, deployment arrangements and specialised infrastructure may be governed by different provisions.

The final rules will determine how the exemptions operate in practice. Businesses and developers should distinguish the government’s stated intention to preserve access from the precise legal requirements that will apply once the regulations are completed.

Why does the wider technology catalogue include biotechnology and solar energy?

The broader revision covers 40 technologies across AI, biotechnology and solar power, demonstrating that China’s approach extends beyond software models. The proposed controls also include restrictions affecting transfers of intellectual property associated with certain novel cell and gene therapies and small interfering RNA technologies.

These provisions have implications for international research partnerships and commercial licensing because access to technology can involve more than exporting a physical product. Intellectual property ownership, manufacturing knowledge and technical services may also form part of a transaction.

The inclusion of solar technology reflects the strategic importance of advanced manufacturing and energy industries. However, the existence of controls within a sector does not establish that every company or technology associated with that sector faces equivalent restrictions.

The proposal represents a broad effort to review sensitive technology transfers. Its eventual impact will depend on the specific categories selected and the conditions attached to licensing.

What happens next before China’s AI export rules are finalised?

Public consultation will continue until November 15, allowing interested parties to respond before the authorities complete the framework. Exporters must also consider the registration requirements applicable to certain transactions during the interim period.

The final rules could influence decisions about international computing facilities, model deployment arrangements and transfers of specialised technical information. Their impact will depend on how regulators interpret sensitive technology and which exemptions remain available.

The October 16 proposal creates a clear regulatory milestone but not a completed prohibition covering all Chinese AI exports. The distinction between restricted technology transfers and permitted online services will be central to assessing the eventual commercial consequences.

What are the key takeaways from China’s proposed AI export controls?

• China’s Ministry of Commerce proposed restrictions on 23 AI technologies on October 16, 2026, including models, agents and computing clusters.
• The proposals form part of a broader revision covering 40 technologies across AI, biotechnology and solar energy.
• Ordinary access through APIs, websites, apps and software-as-a-service platforms would be excluded from the proposed restrictions.
• Many publicly available and open-source technologies would also remain outside the controlled categories.
• The distinction could allow developers such as DeepSeek and Alibaba to maintain overseas services while facing additional oversight of sensitive technology transfers.
• Public consultation remains open until November 15, with certain technology-transfer registration requirements applying in the meantime.
• The final commercial consequences depend on the completed rules, licensing arrangements and the precise technologies covered.