China’s New Strategy on AI: Controlling the Uncontrollable

China has been reconsidering its policy on artificial intelligence. First, it introduced strict AI laws and high penalty fines but is now loosening its views in order to win the AI race with the US, who threatened to ban export to China.
Read on to learn more about what has changed in China’s strategy to AI regulation and how they plan to become the global leader when it comes to this technology, while remaining a communist country.

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china ai regulation

Illustration: Lenka T.

New AI regulation  

China has taken a significant step in regulating generative AI companies by mandating that all such firms align with socialist views and refrain from creating content that opposes socialism. 


China issued what it said "world’s earliest and most detailed regulations" on generative artificial intelligence (AI) models by highlighting healthy content and “core socialist values,” as Beijing seeks to control the rollout of ChatGPT-style services.

Source: Andalou Ajansi 

So, what is considered a “generative AI content service” in this context? 

Apparently, all text, pictures, audio, and video, provided to the Chinese public will be subject to the new rules. 

Additionally, these companies are required to monitor and report any AI users who produce anti-socialist content. Not only that, but AI service providers are required to establish protective measures to safeguard against the addiction of minors to their services. 

The new regulations further stipulate that all AI algorithms used in public tools must be registered with the government.  

Although the recent draft of the regulations does not mention specific fines, it emphasizes the government’s commitment to overseeing AI content and its alignment with socialist principles. 


Under the new regulations, generative AI service providers must “adhere to core socialist values” and not generate any content that “incites subversion of state power and the overthrow of the socialist system, endangers national security and interests, damages the image of the country, incites secession from the country, undermines national unity and social stability, promotes terrorism, extremism, national hatred and ethnic discrimination, violence, obscenity, and pornography.”

Source: Andalou Ajansi 


Previously, China prohibited AI companies from releasing generative AI tools like ChatGPT to the public, limiting their availability only to businesses. The latest move indicates a shift in the country’s approach to AI technology and seeks to ensure that AI development aligns with the government’s ideological goals.   

In the new draft, the fines associated with technology-related offenses, previously ranging from 10,000 to 100,000 yuan, have been entirely eliminated. 

The second draft comes after the US has announced export bans to China, limiting their access to AI chips and other necessary hardware and software. In other words, in order to build internal capacities to become a global leader in artificial intelligence, China had to reconsider national approach to this technology and come up with a solution that would enable companies to further innovate, while staying within the limits of a communist country. 

The described regulations will come into effect on August 15, 2023. 

A journalist by day and a podcaster by night. She's not writing to impress but to be understood.