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BEIJING (BLOOMBERG) – China said it will restrict exports of some artificial intelligence (AI) technologies to “safeguard national economic security” and require government permits for overseas transfers.
Artificial intelligence interface technologies, such as speech and text recognition, and those that analyze data to make personalized content recommendations, were added to a revised list of export control products published on the Ministry of Commerce website at late on Friday (August 28).
The new restrictions could cover technologies used by China’s ByteDance, the official Xinhua news agency reported, citing a trade expert.
ByteDance, based in Beijing, is being forced by the administration of US President Donald Trump to sell the US operations of its popular video-sharing app TikTok.
Microsoft and Oracle submitted rival offers to ByteDance to acquire TikTok’s business in the United States, while Centricus Asset Management and Triller made a last-minute launch on Friday to buy TikTok’s operations in various countries for US $ 20 billion (S $ 27 billion), according to one person. familiar with the matter.
The changes mean that ByteDance will need to seek approval from the Chinese government to sell the US operations of its short video app, according to a person familiar with the matter.
The new restrictions cover the technologies ByteDance uses on TikTok and will require the company to seek government approval for any deal, according to the person, requesting not to be identified because the details are not public. The new rule is aimed at delaying the sale and is not an outright ban, the person said.
ByteDance should study the new export list and consider “seriously and cautiously” whether it should stop the negotiations, Xinhua quoted Cui Fan, the trade expert who is a professor at the Beijing University of International Business and Economics, quoted as saying.
The revised rules would cover cross-border transfers of restricted technologies even within the same company, while the impact and consequences of not making the proper applications would be very different if an international company were spun off, Professor Cui said separately in an interview with Bloomberg. .
Technologies related to drones and some genetic engineering methods and procedures were also added to the revised export control list, while others were removed in areas such as medical equipment.
The revisions are aimed at promoting China’s technological advancement and international cooperation, and “safeguarding national economic security,” a representative of the Commerce Ministry said in a separate statement on Friday.
Technology exports cover various transfers out of China, including through trade, investment and patents, according to the statement.
Any export of restricted technology will require export permit letters of intent from the Chinese authorities before negotiations can take place, while final permits are required before any transfers take place.
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