China’s proposed AI tech export bans may create short-term costs, long-term gains: analysts

China’s proposed AI tech export bans may create short-term costs, long-term gains: analysts



China’s proposed export bans and controls of artificial intelligence technologies aim to tighten Beijing’s grip in the strategically vital sector, casting a cloud over the commercial prospects of domestic model developers in the global AI race, analysts say.

The new measures come as concerns mount globally over the risks of advanced AI systems, following a string of recent cyberattacks, while also underscoring AI’s growing national security importance for both Beijing and Washington.

Zhang Yi, founder and chief analyst at consultancy iiMedia, said the new measures would inevitably introduce short-term adaptation costs for Chinese companies, at a time when they were targeting international markets.

Under the draft plan, jointly issued by China’s Ministry of Commerce (MOFCOM) and the Ministry of Science and Technology on Friday, export prohibitions and restrictions would be imposed on 23 AI-related technologies, including models, agents and chip designs.

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