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Matt Sheehan, author | https://carnegieendowment.org/experts/2116

Global tech expert Matt Shaheen: 'China’s emerging AI governance framework will reshape how the technology is built and deployed.'

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China's emerging development of artificial intelligence (AI) regulations, often overlooked in the U.S., are "some of the world’s earliest and most detailed" and can be used to predict Chinese plans with AI that Western nations can use, says a paper by Matt Sheehan, a fellow at the Carnegie Endowment for International Peace.

China has implemented these significant national AI regulations in the last two years. They target recommendation algorithms, synthetic images and videos, and generative AI systems like OpenAI's ChatGPT, Sheehan's paper says. They serve as a foundation for a "comprehensive national AI law" that China is expected to release in the future, potentially shaping global AI governance similar to the European Union's AI Act. China's approach positions the country as a "laboratory for experiments" in influential technology, Sheehan's paper says.

"China’s emerging AI governance framework will reshape how the technology is built and deployed within China and internationally, impacting both Chinese technology exports and global AI research networks," Sheehan said. 

"International commentary often falls into one of two traps: dismissing China’s regulations as irrelevant or using them as a political prop," Shaheen said, noting that some US leaders have called China's AI regulations into question. As the "largest producer of AI research in the world," China is in a position to lead the rest of the world in AI development as companies continue to seek new ways to get around regulations. 

"China’s regulations create new bureaucratic and technical tools: disclosure requirements, model auditing mechanisms, and technical performance standards," Shaheen said.

China's AI regulation in 2021 was mainly to help the CCP regulate online information, which evolved into policies like setting schedules for workers and online prices, his paper said. Shaheen calls this a "reusable bureaucratic tool" that will be continually used. Chinese authorities also took action to rein in tech platforms in 2021, as provisions were added to prevent anti-competitive practices and excessive price discrimination through algorithms. Providers were also instructed not to develop algorithms that promote addiction or excessive spending. China's "algorithm registry is a standardized disclosure tool" that can be used in the future and adapted with time, Sheehan said.

Chinese AI governance has multiple goals, Sheehan said. First, it aims to shape technology to serve the agenda of the CCP, prioritizing "information control" and "political and social stability." Second, it aims to address the "social, ethical, and economic impacts" of AI on the Chinese population, despite the political constraints faced by policy actors. Third, it seeks to create an environment that fosters China's global leadership in AI development and applications, aligning with the country's goal of becoming a leader in technology. 

Finally, while China may aspire to be a leader in AI governance, that aspiration is not a primary driving force behind its regulations. Global leadership is a secondary objective. Shaheen said China's AI regulation and development will play a significant role in the drafting of a "national AI law" in 2023 or 2024.

Bill Drexel, an associate fellow at the Center for a New American Security, recently spoke on the China Desk podcast for the Federal Newswire. 

"Particularly in AI, the United States government has restricted the export of the most advanced AI-specific chips to China, which really helps to slow down their advancement in these technologies. We read the writing on the wall, and we know if they have unfettered access to these cutting-edge capabilities, the results are going to be nasty," he said. He applauded the U.S. government for preventing some advanced technologies from getting to China, but said the problem is complex, as "our economies are still very interwoven."

"I think at the end of the day our adversary is not the Chinese people, it's the Chinese Communist Party." Drexel also said the U.S. has "underestimated the Chinese Communist Party in tech and geopolitics for too long and to our peril."

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