China Brief A weekly digest of the stories you should be following in China, plus exclusive analysis. Delivered Tuesday. China Wants to Regulate AI Companions With the latest rules, Beijing hopes to rein in a booming industry. Palmer-James-foreign-policy-columnist20 James Palmer By James Palmer, a deputy editor at Foreign Policy. A user is seen chatting with her virtual boyfriend on her phone at a shopping mall in Beijing. A user is seen chatting with her virtual boyfriend on her phone at a shopping mall in Beijing on Feb. 2, 2024. Jade Gao / AFP via Getty Images China James Palmer July…