China Weighs Export Controls on Its Own AI Models and Chips, FT Reports
Beijing is said to be consulting its top AI and chip firms about a licensing regime, though officials have decided nothing and no timeline exists.
(July 21, 2026 – 8:29 am)
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China is considering tightening export controls on its home-grown artificial intelligence models and the chips that run them, according to the Financial Times, in a move that would push Beijing’s technology defences beyond raw materials and equipment.
The newspaper, citing two people involved in the discussions, reported that regulators led by the Ministry of Commerce have been consulting leading domestic AI and chipmaking groups about possible safeguards. Nothing has been decided, and it remains unclear when any measure might take effect.
These talks signal a shift: China is starting to protect its best AI as an asset rather than sharing it, mirroring American curbs that prompted Chinese firms to develop custom ASICs.
According to the FT, officials are considering:
- Revising export lists for AI and chip-related goods
- Implementing clearer licence criteria
- Strengthening end-user checks
- Setting higher barriers for technology transfers abroad
The goal is to prevent China’s most advanced systems and start-ups from being accessed by the West.
While the focus is currently on chips, this could mark a broader shift in how Beijing uses industrial policy. Much of the groundwork was laid earlier this month when the commerce ministry held talks with Alibaba, ByteDance, and Z.ai about limiting overseas access to their flagship AI systems.
Specifics remain unclear, including which chips would be covered, performance thresholds, or how open-source releases would be handled. The ministry has not published a draft policy.
Silence from Beijing is notable since export policy changes are rarely announced in advance. Officials have indicated that any curbs might only apply to future models.
This backdrop includes a chip war escalating over several years: Washington has tightened controls, most recently targeting Nvidia’s top chips and allies cutting off chip-making equipment to China. Beijing has responded with rare earth restrictions and antitrust probes.