China Weighs Limiting AI and Semiconductor Exports, FT Reports

China is reportedly exploring tighter export controls on key artificial intelligence and semiconductor technologies, a move aimed at safeguarding strategic advancements from Western acquisition. According to the Financial Times, citing sources involved in discussions, government bodies led by the Ministry of Commerce have consulted major Chinese AI and chip companies on how to prevent advanced technologies and prominent startups from being acquired by foreign entities.

Companies like Alibaba, ByteDance, and Zhipu have reportedly been engaged in talks with Beijing regarding potential limits on transferring crucial data used for training AI models. Discussions also cover restrictions on foreign users downloading model weights, which contain the core learned information of AI systems. While China may continue to allow foreign access to Chinese AI models and services, certain forms of download, deployment, or reuse outside the country could be curtailed.

This consideration comes as Chinese firms, including Moonshot, DeepSeek, and Zhipu, accelerate their development of open-source AI models. This approach contrasts with the closed systems of U.S. companies like OpenAI and Anthropic, allowing users to install and adapt models on their own servers. The recent launch of Moonshot's Kimi K3 model, which reportedly rivals advanced U.S. systems, highlights the growing capabilities of Chinese AI.

Furthermore, the Ministry of Commerce is seeking opinions on restricting foreign chip manufacturers, such as Qualcomm and TSMC, from producing advanced semiconductors based on designs from Chinese companies like Huawei, Alibaba, or ByteDance. Measures may also target overseas acquisitions of Chinese tech firms, particularly in AI, in response to what Beijing perceives as regulatory loopholes, such as Meta's acquisition of Manus, which Chinese authorities later ordered to be unwound. These potential restrictions could be integrated into China's upcoming revision of its export catalog for prohibited or restricted technologies.