China has solidified its position as a global leader in artificial intelligence (AI), driven by significant advancements and a comprehensive regulatory framework aimed at fostering innovation while managing associated risks. The trajectory of AI in China began with the introduction of intelligent computing in its National Medium and Long-Term Technology Development Plan in 2006, which set the groundwork for recognizing AI as a transformative technology. By 2015, the State Council’s Internet Plus national strategy designated AI as a core component of emerging industries, with ambitions for China to emerge as a major AI innovation hub by 2030. This strategic vision has led to the establishment of a dynamic AI ecosystem, with major technology enterprises rapidly deploying AI across various sectors.
The most recent benchmark in this evolution came on August 27, 2025, when the State Council unveiled the AI Plus Action Plan, outlining priorities for AI deployment in six key areas: science and technology, industrial utilization, consumer services, public welfare, governance and security, and international collaboration. China aspires to achieve 70% AI penetration in key sectors by 2027 and 90% by 2030, envisioning a fully AI-powered economy and society by 2035.
Since 2021, China has rolled out a series of regulations and policies that reflect a mature approach to AI governance, balancing innovation with accountability and data security. These frameworks encompass regulations on algorithms, deepfakes, generative AI, privacy, and intellectual property, ensuring that emerging technologies operate within a structured legal environment.
China’s regulatory strategy is characterized by its agility and adaptability, focusing on high-risk areas such as generative AI and algorithmic governance rather than implementing a single comprehensive AI law. Specific provisions, like the Administrative Provisions on Algorithm Recommendation for Internet Information Services, effective March 1, 2022, require service providers to disclose the use of algorithms and allow users to opt out. This regulatory initiative underscores the importance of fairness and transparency while imposing penalties for non-compliance, which can range from fines to criminal liability.
In November 2022, the introduction of the Administrative Provisions on Deep Synthesis of Internet-based Information Services marked another significant step in managing the impact of deep synthesis technologies. Effective January 2023, these regulations require service providers to establish user registration, content monitoring, and data protection mechanisms while explicitly prohibiting the dissemination of illegal information.
China’s proactive stance on generative AI took shape with the Interim Measures for Administration of Generative AI Services, which came into force on August 15, 2023. This marked China as the first country to enact binding regulations specifically governing generative AI. While internal research and development activities are exempt from stringent compliance requirements, public-facing services must adhere to various obligations, including ensuring the legality of training data and obtaining user consent for personal data.
Ethical considerations have become central in AI discussions, especially following the release of the Interim Measures for Ethics Review Measures on December 1, 2023. These regulations mandate ethical reviews for AI activities impacting health, safety, or public order, reinforcing the need for fairness and accountability in AI development.
The recent Labelling Measures for AI Generated Content, effective September 1, 2025, further clarify the requirements for AI-generated content. These measures mandate visible labels for content generated by AI systems and require platforms to monitor and manage compliance rigorously. Non-compliance can lead to investigations and significant penalties, including potential criminal liabilities.
While specific legislation on agentic AI remains absent, existing regulations covering recommendation algorithms and generative AI generally apply to its development. Developers are expected to conduct impact assessments and adhere to ethical guidelines, ensuring responsible innovation in AI capabilities. The legal landscape also includes robust privacy and cybersecurity regulations, with three key laws—Cybersecurity Law, Data Security Law, and Personal Information Protection Law—governing AI activities. Notably, amendments to the Cybersecurity Law, scheduled to take effect on January 1, 2026, will explicitly incorporate AI considerations, emphasizing risk management and ethical governance.
Chinese courts have begun to address how copyright law applies to AI-generated works, with various landmark rulings establishing precedent. A significant ruling by the Beijing Internet Court in November 2023 recognized copyright protection for an AI-generated image, contingent on the plaintiff’s demonstrable creative input. Conversely, some courts have denied protection where insufficient human creativity is evident, indicating a nuanced judicial approach.
As regulators ramp up enforcement of AI regulations, including compliance with AI-specific requirements, businesses operating in this rapidly evolving environment are urged to assess their strategies diligently. With a comprehensive regulatory framework solidifying across multiple dimensions of AI, companies must act promptly to ensure compliance to navigate the complexities of China’s AI landscape effectively.
