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China Softens Stance on Generative AI Industry, Prioritizes Support for Development
China has released new measures to regulate its rapidly growing generative artificial intelligence (AI) industry. The government aims to support technology development while ensuring security, marking a shift from an earlier draft. The rules are set to take effect on August 15 and are described as “interim.
Less Onerous Rules Emerge, Focusing on Public Products
Analysts highlight that the final rules are significantly less burdensome compared to the previous draft outlined in April. Notably, the Cyberspace Administration of China (CAC) states that only providers intending to offer services to the public need to undergo security assessments. This suggests that companies focusing on enterprise-facing products will enjoy more flexibility.
Encouraging Investment in China’s Generative AI Scene
Investment in China’s generative AI sector has been substantial, with companies like Baidu and Alibaba Group launching numerous AI models. However, awaiting Beijing’s finalization of the technology’s rules and product approval, most companies have focused on finding industrial applications. JD.com recently joined the race by unveiling ChatRhino, an enterprise-facing large language model.
Positive Signal for Market Expectations
Analysts, including Kai Wang from Morningstar, view the current version of the rules as aligning with market expectations. This positive signal indicates that regulators are paving the way for large-scale product launches by Chinese companies. It reflects China’s determination to compete with the United States in AI and become a global leader in the field by 2030.
Aligning with Socialist Values and Intellectual Property Rights
China emphasizes the need for content generated by generative AI to align with the country’s core socialist values. The CAC reiterates that service providers must ensure intellectual property rights are not infringed and advises the use of legitimate data sources. China aims to foster technology development in generative AI algorithms, semiconductors, and actively participates in formulating international rules.
Scientific Supervision to Drive Innovation and Development
To strike a balance between safety concerns, copyright protection, and innovation, China calls for relevant national authorities to improve their supervisory methods. The goal is to ensure scientific and compatible regulations that promote innovation and development. As countries worldwide grapple with setting regulatory guardrails for generative AI, China aims to stay ahead of the curve.
