China said it would restrict the exports of some artificial intelligence (AI) technology to “safeguard national economic security,” and would require government permits for overseas transfers.
AI 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 Chinese Ministry of Commerce’s Web site on late Friday.
The new restrictions could encompass technologies used by China’s ByteDance Ltd (字節跳動), Xinhua news agency reported, citing a trade expert.
Beijing-based ByteDance is being forced by US President Donald Trump’s administration to sell the US operations of its popular video-sharing TikTok app, and it is unclear if the new rules will affect any potential sale.
Microsoft Corp and Oracle Corp have submitted rival bids to ByteDance to acquire TikTok’s US business, while Centricus Asset Management Ltd and Triller Inc made a last-minute pitch on Friday to buy TikTok’s operations in several countries for US$20 billion, according to a person familiar with the matter.
ByteDance should study the new export list and “seriously and cautiously” consider whether it should halt negotiations, Xinhua cited Cui Fan (崔凡), a trade expert who is a professor at Beijing’s University of International Business and Economics, as saying.
The revised rules would cover cross-border transfers of restricted technologies even within the same company, while the impact and consequences of failing to make appropriate applications would be very different if an international business is spun off, Cui said separately in an interview with Bloomberg.
Technologies related to drones and to some genetic engineering methods and procedures were also added to the revised export-control list while others in areas such as medical equipment were removed.
The revisions are meant to promote China’s technological advancement and international cooperation, and “safeguard national economic security,” a ministry representative said in a separate statement on Friday.
Technology exports cover various transfers out of China including via trade, investment and patents, according to the statement.
Any export of restricted technology would require letters of export permit intentions from Chinese authorities before negotiations can be held, while final permits are required before any transfer happens.
Separately, Chinese telecoms equipment maker Huawei Technologies Co Ltd (華為) is focusing on its budding cloud business, which still has access to US chips despite sanctions against the company, to secure its survival, the Financial Times newspaper reported.
Huawei’s cloud computing business sells computing power and storage to companies, including giving them access to artificial intelligence, and has been growing rapidly, the newspaper reported yesterday, citing sources.
In January, Huawei put the unit on an equal footing with its smartphones and telecoms equipment businesses, the paper reported.
The unit was stepping up its offerings and Beijing would increasingly support the company through public cloud contracts, the report said.
US President Donald Trump’s administration has restricted technology exports to Chinese companies in particular, notably Huawei, citing national security risks.
Additional reporting by Reuters
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