Summary
In the context of the rise of artificial intelligence, China seeks to impose rules and aims to become the global leader in this sector by 2030, particularly in the automotive and medical industries.
Last update 24/07/2023
5 key points to remember:
- China aims to become the global leader in artificial intelligence by 2030, particularly in the automotive and medical industries. E-health and e-pharmacy are priority areas for Chinese companies, which are beginning to develop digital platforms.
- China has implemented numerous AI regulations, notably on personal data protection, algorithm regulation, and more recently on the content of so-called generative AI.
- Users, providers, developers, and Chinese companies are affected by the new Chinese regulations and are subject to various obligations under penalty of sanctions.
- Conformity with the fundamental values of socialism and national unity, respect for intellectual property, and transparency are the main principles targeted.
- China’s regulation diverges from European regulation, particularly regarding respect for fundamental rights.
Introduction
In the context of the rise of artificial intelligence, China seeks to impose rules and aims to become the global leader in this sector by 2030, particularly in the automotive and medical industries. The health sector is indeed a priority for China, which, since 2014, has been the second most advanced country in the world in e-health. The Chinese company Alibaba also developed the AliHealth platform in 2014, which has become a reference in e-pharmacy.
Embedded in the new Silk Roads, China views AI as a strategic sector, particularly for its place in global innovation. What exactly is China doing in terms of AI regulation? Can it become a real competitor to the European Union? What obligations must companies using artificial intelligence comply with? This article delves into Chinese practices and their main guidelines.
Timeline of Chinese AI regulations
Considering AI as both a strategic sector and a threat to regime stability, China has developed numerous laws and regulations. In 2015, the “Made in China 2025” plan, launched by the State Council, aimed to transform China into a global high-tech manufacturing leader. By July 2017, a New Generation Artificial Intelligence Development Plan. (AIDP) was published to address various ethical, legal, and geopolitical challenges.
Data Protection Regulation
Like the European Union, China has a data protection regulation, enacted in 2021, aimed at protecting technology users from fraud and malicious initiatives. This law imposes obligations on digital companies, such as the need to obtain authorization to process biometric, medical, health, and financial personal information. They must inform about the use of personal information, similar to the GDPR in Europe. If companies do not comply with the obligations, they may be fined up to 5% of their annual revenue. They also risk being suspended from providing their services in the event of a serious breach.
User rights are also provided for, such as the possibility to refuse targeted advertising. However, this regulation differs from the GDPR in that it does not apply to the government or Chinese administrations, which can continue to monitor the population.
On March 1, 2022, algorithms were also regulated with the new regulation for Internet service users regarding recommendations made by algorithms. The provisions of this regulation mainly concern providers, who must explain the functioning and purpose of these mechanisms. This law aims to prohibit the production of false information and protect the elderly.
Synthetic Technologies
More recently, at the beginning of 2023, China adopted a new law regulating “synthetic technologies” to manage « deepfakes, » a technique that allows the manipulation of audio and video content using AI. This regulation is based on the principles of data security and personal information protection, transparency, content management, and technical security. It establishes strict rules at each stage of AI development and use to facilitate control.
Finally, the most recent regulation, not yet in force but already impactful, is that of the Cyber Administration of China (CAC) – the Chinese cyberspace regulator – which published 21 regulatory articles on April 11, 2023. This law focuses more on generative AI, in the context of the rise of ChatGPT. This regulation will be developed in this article and can be compared to that of the European Union on some points.
Who is affected by Chinese regulation?
Chinese regulation aims to protect users primarily against violations of their personal data by companies. Users are subject to obligations such as registering for digital services with their real names.
The provider is the major actor who must comply with Chinese AI laws. The latest regulation requires them to conduct a security assessment before their services are available online. They become responsible for any intellectual property violations or personal information leaks.
The developer is subject to a high level of technical control, very difficult for companies to achieve. Companies will be subject to a preliminary assessment for their AI system to be available. A security inspection will also be imposed on Chinese software.
China, seeking to strengthen innovation, could ultimately, with this strict regulation, find itself lagging behind Europe.
Key principles of AI regulation by China
China closely monitors the development of artificial intelligence, particularly generative AI. One of the main principles of the regulation concerns “socialist values”. The recent regulatory draft states that AI-generated content must « reflect fundamental socialist values and must not contain elements related to subversion of state power. » For example, AI service providers and developers are not allowed to promote content that would harm “national unity.” China intends to regulate content promoting terrorism, extremism, ethnic hatred, or discrimination.
Another principle of their regulation concerns respect for intellectual property, equivalent to the European Union’s wish. China places great importance on respecting copyright. Data quality is also demanded.
Finally, transparency and the implementation of measures preventing users from developing a dependence on AI-generated content are included in the Chinese regulatory plan.
Conclusion
China, aiming to become the global leader in AI, appears as a competitor to the European Union. Its regulatory model has certain convergences with Europe, particularly on transparency and respect for intellectual property. However, China focuses more on promoting innovation, which goes hand in hand with political control, while the European Union emphasizes the need to protect fundamental rights and promote ethical outcomes. What is certain is that a new geopolitical race concerning AI is taking shape…