Officials led by China’s Ministry of Commerce discussed imposing restrictions on the most advanced AI models, including both closed-source and open-source systems, according to sources, Reuters reported on Wednesday.

Chinese officials are considering stricter controls on advanced AI by making the leak or theft of proprietary AI technology a national security offense and exploring limits on who can fund domestic AI startups. The proposed measures are still under discussion, could apply only to future AI models, and may not necessarily be implemented, as per the report.

Alibaba and ByteDance did not immediately respond to Benzinga‘s request for comments.

AI Export Curbs Could Reshape Market

The discussions reflect Beijing’s growing view of cutting-edge AI as a strategic national asset. Any export limits could reshape global AI markets, increasing costs for businesses that rely on China’s increasingly competitive, low-cost AI models.

Meanwhile, the Trump administration has raised national security concerns over advanced AI, particularly the risk of American AI models being misused by military and intelligence agencies in China, Russia, and other countries.

China’s AI Threat Divides Experts

However, Futurum Group CEO Daniel Newman rejected the idea that U.S. enterprises would abandon leading American AI labs in favor of Chinese open-source models, calling the narrative baseless.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock