China is considering export restrictions on its most advanced AI models, according to reports citing discussions with major tech companies. The proposed measures, led by the Ministry of Commerce, could limit foreign access to high-performance systems, both closed and open models, and may include unreleased models. The discussions also touched on stricter controls over funding for domestic AI startups and potential legal actions under national security laws. The scope and timeline of these rules remain under debate. Source: thedecoder

Chinese authorities have already begun shaping potential restrictions, with a focus on protecting sensitive AI technologies. The discussions, which included Alibaba, ByteDance, and Z.ai, considered placing the transfer of protected AI technology under China's national security law. The proposed rules could apply to future models, though the exact implementation and timing remain uncertain. These measures align with broader protectionist trends, including recent actions against foreign acquisitions of Chinese startups. Source: thedecoder

Europe faces growing risks as both China and the U.S. treat AI as a strategic asset. Until now, many European companies relied on China's open AI models as a cheaper alternative to U.S. services, but China's proposed restrictions threaten to cut off that access. The EU's InvestAI initiative aims to boost local AI development, but it lags behind U.S. investments. Europe's reliance on foreign AI services continues to rise, with over 80% of digital products and services sourced from outside the bloc. Source: thedecoder