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.

Despite viral consumer adoption, China's government is warning state-owned enterprises against using the open-source agent OpenClaw. This highlights a growing tension between the country's push for rapid AI innovation and the state's deep-seated concerns over data security, privacy, and control with open, unaudited models.

While currently promoting open-source AI, the Chinese Communist Party will inevitably lock down powerful models once they are capable of sophisticated cyber operations. The risk of domestic groups, like Tibetan separatists, using these tools to challenge state control like the Great Firewall is a threat the CCP will not tolerate.

Beijing is reportedly exploring blocking overseas distribution of its leading AI models, viewing them as national security assets. This challenges the widespread assumption that companies can indefinitely rely on these models as a low-cost alternative to Western frontier models, forcing a strategic rethink.

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.

China is considering restricting overseas access to its most advanced AI models from firms like Alibaba and ByteDance. This move directly emulates US restrictions on models like GPT-4, signaling a global trend where governments view frontier AI not just as a commercial product, but as a strategic national asset requiring state control.

Publicly released Chinese AI models appear less capable at cyber tasks than Western counterparts. This is likely a deliberate strategy to avoid provoking their own government. However, their internal models, especially for military and state security, are undoubtedly far more advanced and closer to the cutting edge.

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.

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.