China Proposes Strict Controls on Key Technologies
China’s Ministry of Commerce has released a draft plan for export limits on 40 key technologies spanning artificial intelligence, photovoltaics, and biomedicine. The export of 14 of these technologies is to be banned, while the other 26 will require official approval according to state and international reports.
As readers of our regional coverage across Asia examine how regulatory shifts affect cross-border cooperation, these proposed export controls signal a major pivot in how research and commercial partnerships operate. Companies are currently required to register affected technology transfers, including selling intellectual property rights and granting licences abroad, even though the new bans and approval requirements have not yet been finalized according to the ministry announcement published on Friday. Public comments on the draft plan are being accepted until November 15.
Scope of Artificial Intelligence and Solar Restrictions
The regulatory focus centers heavily on 23 artificial intelligence technologies, specifically targeting large AI models and autonomous AI agents which perform tasks largely autonomously. Alongside digital systems, the restrictions cover manufacturing processes for solar cells and techniques for cell and gene therapies according to the Ministry of Commerce. While individual solar production facilities fall under the controls, finished solar modules are exempt from the planned limits.
Access to AI services via applications and websites remains exempt from the new export limits, alongside AI technologies that are already publicly available. The Ministry of Commerce cited security risks, noting that artificial intelligence could be used for attacks on important infrastructure. Furthermore, solar technology is applied in space and defence sectors, prompting the state to review outgoing transfers carefully.
Historical Context and Global Technology Rivalry
The new trade measures fit within a broader pattern of technological regulation enacted by Beijing in recent years. China had already restricted certain processes for making battery materials and extracting lithium in 2025, alongside introducing approval requirements for certain rare earths and products made from them. These actions form part of an ongoing technology rivalry with the United States, which in turn controls exports of advanced artificial intelligence chips to China.
Historically, artificial intelligence developed as an academic discipline beginning in 1956 through cycles of optimism, funding winters, and subsequent revivals driven by graphics processing units and deep learning. Today, international financial and regulatory bodies monitor digital adoption closely, such as the Financial Stability Board publishing sound practices for the responsible adoption of artificial intelligence in October 2026. Within Asia, institutions and research bodies now navigate these overlapping export curbs as global powers restrict the cross-border flow of foundational code and manufacturing blueprints.
Scope of Non-AI Technology Restrictions
Beyond the extensive focus on artificial intelligence, the Ministry of Commerce’s draft plan encompasses critical advancements in biomedicine and energy infrastructure. Specifically, the proposal introduces rigorous oversight for techniques related to cell and gene therapies. These medical technologies are now subject to the same classification as other key technologies, meaning that while some processes may face outright bans, others will require formal government approval before they can be transferred or licensed to international entities.
The restrictions also target the industrial foundations of the solar energy sector. While the policy exempts finished solar modules from these new limits, it explicitly covers the manufacturing processes used to produce solar cells. According to the ministry, these measures are necessary due to the dual-use nature of the technology, as solar components are increasingly applied in space and defence sectors. By regulating the underlying production techniques, the state aims to mitigate potential security risks associated with the global flow of these manufacturing blueprints.
These initiatives follow a clear trajectory of state-led industrial regulation in China. The government previously implemented similar controls in 2025, which restricted specific processes for the extraction of lithium and the production of battery materials. Furthermore, the state has already established approval requirements for the trade of certain rare earths and products derived from them. The Ministry of Commerce has clarified that these current measures are not aimed at any specific companies or countries, but rather serve as a broader regulatory framework for managing the export of sensitive technological assets.
Exemptions and Security Rationale Behind the Controls
The Ministry of Commerce has clarified that access to AI services via applications and websites remains exempt from the new export limits, as do AI technologies already publicly available. This distinction aims to balance national security concerns with the continued operation of commercial and consumer-facing AI platforms.
Similarly, while manufacturing processes for solar cells are subject to regulation, finished solar modules are explicitly excluded from the planned controls. The ministry cited the dual-use nature of these technologies, noting that artificial intelligence could be used for attacks on important infrastructure and that solar technology finds application in space and defence sectors, necessitating careful review of outgoing transfers.
Impact on International Research Collaboration and Intellectual Property Licensing
Following the publication of the Ministry of Commerce’s announcement on Friday, companies are currently required to register affected technology transfers. These mandatory registrations apply to cross-border commercial and research operations, specifically including the selling of intellectual property rights and the granting of licences abroad.
These regulatory shifts directly impact how international partnerships handle sensitive assets across the 40 key technologies covered by the draft plan. While the proposed export bans and approval requirements have not yet been finalized, the registration mandate is already in effect while public comments remain open until November 15.
Technology Rivalry Dynamics with the United States
The export restrictions form part of an ongoing technology rivalry with the United States, which controls exports of advanced artificial intelligence chips to China according to the Ministry of Commerce announcement. This reciprocal control environment reflects broader strategic competition between the two nations over critical technological capabilities. The measures are not aimed at specific countries or companies but serve as a regulatory framework within this competitive context.
China had already restricted certain processes for making battery materials and extracting lithium in 2025, alongside introducing approval requirements for certain rare earths and products made from them, as noted in the same announcement. These prior actions demonstrate a pattern of technological regulation that aligns with the evolving dynamics of the US-China technology rivalry. The current draft plan extends this approach to AI, solar, and biomedicine sectors.
Sources
- China to limit exports of 40 key technologies, including AI and solar
- Artificial intelligence
- FSB finalises sound practices for the responsible adoption of artificial intelligence (AI)
Photo: EditQ (CC BY-SA 4.0)
