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Contrary to the view of it as a Wild West, China heavily regulates consumer AI. For instance, they restrict an AI's ability to impersonate a character for extended periods to prevent the kind of psychological dependence and psychosis seen in users of some Western chatbot apps.
The common Western argument that regulating AI is futile because "China will never slow down" is a misconception. China's government and research community actively engage with AI safety, even implementing policies that have slowed down their own companies in the name of safety.
Contrary to fears that U.S. regulation cedes ground to China, the CCP has strong self-interested reasons to regulate AI. It is highly concerned with internal stability and control, cracking down on AI-driven social disruption and the risk of domestic cyberattacks, independent of Western policy.
A crucial paradox exists with top Chinese AI models: they are incredibly powerful and competitive when accessed outside of China. However, within the country, they operate under such strict guardrails and censorship that their capabilities are dramatically reduced.
Contrary to the argument that regulation stifles innovation, China has implemented extensive AI regulations over the past four years. During this same period, its AI technology has made significant inroads, challenging the notion that a laissez-faire approach is essential for competitiveness.
Contrary to fears that U.S. regulation creates a competitive disadvantage, China's track record, like crushing its AI companion sector over risk concerns, indicates Beijing will also implement strong AI safety rules. This creates potential for U.S.-China alignment on safety.
While the U.S. stalls on AI legislation, China is actively regulating it. This has led to significantly higher public trust and adoption in China (87% trust vs. 32% in the US), creating a more stable environment for AI development and deployment.
The Chinese government perceives less risk from releasing open-weight models because it has a demonstrated ability to censor and control its domestic internet. They believe that if a model proves dangerous, they can effectively scrub it from circulation and track down illicit use, a capacity Western governments lack.
Unlike the US's voluntary approach, Chinese AI developers must register their models with the government before public release. This involved process requires safety testing against a national standard of 31 risks and giving regulators pre-deployment access for approval, creating a de facto licensing regime for consumer AI.
China is legislating against AI-driven labor issues like 'digital cloning,' which could foster public trust and accelerate AI adoption. Meanwhile, the US's hands-off policy is fueling popular backlash, leading to data center moratoriums and potentially slowing its own AI progress.
Mindful of historical Luddite backlashes, both the Chinese government and AI entrepreneurs adopt a cautious, collaborative approach. Regulations, like those for AI companions, are drafted and then softened after industry feedback, balancing innovation with the government's top priority: social stability.