China AI policy

Automakers can apply for the second batch of the L3 access pilot to obtain conditional approval

M- and N-category vehicles with L3/L4 autonomous systems must comply with the mandatory standard before 1 July 2027 or cannot be sold.

Models exceeding 2T parameters or 10^26 FLOPS training compute will require export approval, and public open-source releases could be restricted — release strategies must be re-evaluated

Commerce and manufacturing companies can apply for inclusive computing power, 'specialised and sophisticated' enterprise status, and fiscal support under the 'AI + Manufacturing' action.

Transfers of AI technology, models or related technical materials abroad (including to ASEAN) will require prior export licences, raising deal timelines and compliance costs

Exporting non-public large model, agent, or computing cluster technologies via licensing, sale, or weight delivery requires interim registration with MOFCOM during the transition; in-flight transactions are also covered, with no grandfathering.

Automakers and ADAS suppliers must audit all marketing materials, manuals, and launch statements to remove exaggerated claims or wording that downplays driver responsibility

Export of large models, AI agents and computing cluster technologies would become restricted, so cross-border licensing, partnerships and deployments need export-control review

Export of model weights, source code, and training methods above the 10^26 FLOPs or 2 trillion parameter thresholds will require approval before release, delaying or blocking cross-border collaborations

Cross-border export or transfer of AI, biopharma or solar technology will require approval, so companies must plan licensing ahead

Chinese companies transferring AI models, algorithms or related technology abroad will face new export licensing requirements.

Companies exporting large model, agent, or computing cluster technologies must complete export licensing or pre-export registration for the 23 AI items

Overseas localised deployment of restricted large models falls under export control and requires a licence (automatic licence available for deployment on overseas self-owned cloud); API calls, SaaS apps and lightweight on-device deployment are outside scope.

Foreign AI services must obtain Chinese AI approval before launching in China; Apple's approval provides a reference path for similar products.

Companies doing AI R&D or deployment in Hong Kong can expect greater local compute supply; watch for application channels and pricing of compute resources.

AI model developers gain a clear "AI + railway" application direction with operation and maintenance data scenarios for online safety assessment and intelligent O&M projects.

AI-generated marketing content using real people's likeness or voice is a primary enforcement target, risking account bans and content removal

Companies must strengthen core technology R&D in multi-sensor fusion, algorithms, solid-state batteries, automotive chips, and operating systems

Chinese AI companies must ensure compliant handling of user data and prevent unauthorized data transfers

Manufacturing enterprises are required to accelerate the application of AI in R&D design, production manufacturing, and management operations to enhance digitalization and intelligentization, aligning with national industrial policy directions.

Obligations: Companies must comply with new evaluation standards for token factories, focusing on core technical metrics like model adaptation capacity and energy efficiency. • Opportunities: Firms with leading token factories can receive government support. Companies involved in model technology iteration, chip adaptation, and overseas service development can tap into new market opportunities. • Deadlines: The plan is set for implementation from 2026 to 2028, with specific milestones for building factories, launching platforms, and achieving technology breakthroughs.

Obligations: Companies must exercise caution when using AI tools, not blindly trust or grant permissions to unknown AI services. They must set clear behavioral boundaries and strict permissions for AI agents, not casually open internet access or content editing rights.

Obligations: Companies operating in South Korea must comply with the government's directive to accelerate AI research and applications, while strengthening risk prevention measures for deepfakes, cyberattacks, and privacy. • Opportunities: South Korea's continued push for AI development presents opportunities for companies to participate in AI research, development, and application projects, especially in the semiconductor and hardware sectors. • Deadlines: The government plans to soon announce the next phase of its autonomous AI foundational model plan, creating a timeline for companies to prepare for potential new regulations or funding opportunities.

Obligations: Companies in the electronics manufacturing sector must align their R&D and production strategies with the plan's goals, particularly in developing advanced chips and promoting domestic operating systems.

The government will support the promotion of new energy vehicles and green smart home appliances in rural areas, providing market opportunities for related enterprises.

Obligations: Software companies are required to participate in the initiative, develop intelligent software products, and cooperate with terminal manufacturers for joint innovation. • Opportunities: Companies can benefit from government funding and support to develop new intelligent software products and participate in the creation of benchmark applications. • Deadlines: By 2028, the initiative aims to cover 20,000 large-scale software enterprises and create 100 benchmark applications.

Obligations: Companies participating in the IIFAA working group must contribute to the development of a unified standard for AI agent identity, ensuring compliance with emerging trust frameworks.

Obligations: Companies expanding into ASEAN from China must align their strategies with China Unicom's 'Fifteenth Five-Year' investment plans and development initiatives.

Lists 11 new professions and 23 new job types, covering digital and green professions.

From 1 July 2027, L3/L4 automated driving systems must meet the mandatory safety requirements; non-compliant models cannot be sold.