China is considering tighter export controls on artificial intelligence models and semiconductor technologies as Beijing looks to limit overseas access to some of the country’s most advanced technical capabilities.
The proposed measures could restrict the transfer of AI training data and model weights, according to people familiar with discussions cited by the Financial Times. Chinese authorities are also considering controls that could stop foreign chipmakers from manufacturing advanced semiconductors based on designs developed in China.
The plans haven’t been finalised, and regulators are still gathering feedback from companies that could be affected.
China Considers Controls on AI Model Weights and Training Data
China’s Ministry of Commerce is leading discussions with domestic technology companies about how advanced AI models can be accessed and used outside the country.
Officials have reportedly consulted Alibaba, ByteDance and Zhipu, also known as Z.ai, about potential restrictions on transferring important model training data across borders. The discussions also cover whether overseas users should be prevented from downloading the weights behind China’s most capable models.
Model weights are the numerical parameters an AI system learns during training. They help determine how the model processes information and produces its responses. Allowing users to download them means the model can often be run, modified or further trained without relying on the original developer’s infrastructure.
The proposed rules wouldn’t necessarily prevent foreign businesses and developers from using Chinese AI altogether. The Financial Times reported that users could still be allowed to access models through online services, even if they couldn’t download the underlying weights or obtain sensitive training data.
Reuters previously reported that the Ministry of Commerce had held meetings with Alibaba, ByteDance and Z.ai about limiting overseas access to China’s leading models. Those talks covered both closed systems and models released with more openly available weights.
Officials also discussed whether leaks or theft of proprietary AI technology could be treated as offences under China’s national security laws, according to Reuters’ earlier report.
Proposed Rules Could Extend to Semiconductor Designs
The discussions aren’t limited to AI software.
Chinese regulators are also considering measures that could prevent overseas manufacturers from producing advanced semiconductors based on designs created by Chinese companies.
The restrictions could affect international chip businesses including Taiwan Semiconductor Manufacturing Company, better known as TSMC, and US-based Qualcomm. Both companies manufacture or develop technology used across the global semiconductor industry.
China has invested heavily in building its domestic semiconductor industry as US restrictions have limited Chinese access to some advanced chips and chipmaking equipment. Huawei, Alibaba and ByteDance are among the Chinese technology groups developing their own processors or investing in alternatives to imported AI hardware.
Under the proposals now being considered, a chip designed in China might not be eligible for production at certain overseas facilities without government approval.
No detailed licensing process has been announced, and it isn’t yet clear which chip designs or manufacturing processes could fall under the proposed controls.
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Overseas Acquisitions Could Face Greater Scrutiny
Beijing is also considering restrictions on foreign companies acquiring Chinese businesses that hold strategically important AI technology.
The discussions have included agentic AI, a term used for systems that can plan and carry out multi-step tasks with limited human direction. Regulators are reportedly looking at whether overseas acquisitions could result in strategically valuable technology or intellectual property leaving the country.
Any new measures could be incorporated into China’s catalogue of technologies that are prohibited or restricted from export. The catalogue sets out which technologies can’t leave the country and which require government approval before they can be transferred abroad.
China updated the catalogue in 2025, adding several battery-related technologies to the list. The next revision could expand its scope further into advanced AI and semiconductor capabilities.
However, the proposals remain under discussion. Regulators are still assessing feedback from the technology industry, where some companies have raised concerns that strict controls could weaken the international reach and competitiveness of Chinese AI products.
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No Final Decision Has Been Announced
Neither China’s Ministry of Commerce nor the companies named in the reports had responded to requests for comment when Reuters published its report on Tuesday.
Reuters said it couldn’t independently verify the latest details reported by the Financial Times. There has also been no official announcement confirming which technologies could be covered, when any restrictions might take effect or how they would be enforced.
For now, the reported proposals show that China is considering controls that reach beyond physical chips and manufacturing equipment. They could also cover the data, model weights and intellectual property used to build and operate advanced AI systems.
Whether those ideas become formal policy will depend on the outcome of the government’s consultations and the final wording of China’s revised export control catalogue.
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