China to Regulate AI as US Plugs Export Control Loopholes

China plans to implement strict regulations on artificial intelligence (AI) as the US formulates tighter export control on advanced chips.

The Chinese Communist Party (CCP) intends to balance the risks and benefits of AI technology. Given how generative AI has disrupted the global tech industry, China wants to curb how the technology is used.

According to reports, the government wants to ensure AI training does not violate copyright and privacy. An initial draft of the regulations has been published and will be amended as more information is gathered.

Regulators focused on security concerns regarding how large language models (LLMs) use training data for machine learning. In particular, they are looking into the training systems used by OpenAI’s ChatGPT and Baidu’s Ernie Bot.

Moreover, the proposal wants to inject human intervention into the data processing structure as an extra safeguard. All training data must first obtain certification from authorized data labelers and reviewers before being used.

In addition, companies must also obtain licenses for their LLM foundational models before they can operate in China. In effect, the government will gain access to information being fed into generative AI models.

Anyone can provide input and feedback on the draft proposal until its public review period ends on October 25.

Export Control for AI Chips to Tighten for China

Later this week, the US will implement tighter export control measures for American chipmakers dealing with Chinese companies. The fresh sanctions will prevent advanced AI chip exporters from sidestepping restrictions.

In October last year, Washington passed sweeping restrictions to stop advanced chipmaking equipment and semiconductor shipments to China. However, several Chinese firms skirted around the prohibition through their subsidiaries and suppliers overseas.

Furthermore, some chipmakers reduced the power of their chips to slightly below the guidelines while maintaining their advanced capabilities. The amendments will cover both loopholes to prevent China from strengthening itself using US technology.

Chips for consumer products like laptops and smartphones will be exempted from the new restrictions.