China Seeks to Limit Foreign Access to Top AI Models, Boosting Domestic Innovation

Chinese authorities hold meetings with leading tech firms about potentially restricting foreign access to China’s most advanced AI models.

This follows Beijing’s significant steps to keep domestic AI within the country, reflecting how both China and the US view groundbreaking artificial intelligence as a strategic asset needing controls. Since DeepSeek’s R1 model was launched last year, Chinese AI models have expanded internationally due to their low costs and increasing capabilities.

Any decision by Beijing to restrict access could have knock-on effects across AI markets, with many businesses likely facing increased costs. Officials say using AI technology could be an offense under China’s strict national security legislation, raising the feasibility of new policies restricting who can fund domestic AI startups.

The scope of possible rules is still under discussion and may only apply to future models. The Trump administration has also been deeply concerned about the national security implications of AI, particularly the potential for American AI products to be misused by military intelligence in China, Russia, and other countries.

Anthropic announced it will restrict its powerful new AI model, Fable 5 and Mythos 5, to adhere to export regulations after US authorities identified flaws following public release. The company has barred foreign nationals from using Claude Fable 5, describing it as “too powerful” for public release.

Chinese authorities are concerned about the potential for Mythos to exploit software vulnerabilities. Consequently, China has launched investigations into Manus and other local AI startups, attempting to establish whether they have broken export control laws. Additionally, more advanced technologies face security reviews, with the most advanced models barred from public release.