Beijing is considering a broad ban on the export of advanced Chinese artificial intelligence models, extending potential restrictions to both open-source and proprietary systems developed by domestic firms. Officials told executives at Alibaba Group, ByteDance, and Zhipu AI in June that leaks or theft of advanced AI technology could be prosecuted under China's national security law, while also discussing new limits on funding for domestic AI startups.
The discussions, led by the Ministry of Commerce, signal a sharp tightening of control over Chinese technology reaching foreign markets. New rules published on July 1 expanded national security reviews of outbound deals involving Chinese investors, data, and technology. Authorities have already opened investigations into Manus and other AI startups that relocated abroad for alleged export-control violations.
The crackdown has already reshaped major transactions. China's state planner ordered Meta Platforms in April to unwind its $2 billion acquisition of Manus, an AI company whose founders had relocated to Singapore in 2025. The potential export restrictions remain under discussion and may apply only to future AI models.