China Proposes Export Controls on 40 AI, Biomedicine and Solar Technologies

China's Ministry of Commerce and Ministry of Science and Technology published a proposal on Friday, 16 October 2026, to add 40 technologies in artificial intelligence, biomedicine and solar power to the catalogue of technologies prohibited or restricted from export. Public comment on the draft runs until 15 November 2026. Exporters must already register certain overseas transfers of these technologies, a requirement that stays in place until a revised catalogue takes effect.

The draft is not final. Reuters reports that final rules will follow once public consultation closes on 15 November 2026.

What the 40 Technologies Cover

The Associated Press reported that 23 of the 40 items are AI-related, 12 relate to solar power and 5 to biomedicine. The solar list includes technologies used to make polysilicon. The biomedicine list includes cell and gene therapy.

On the AI side, Reuters reported that the list covers models, agents and computing clusters. AP reported that core technologies for large models trained on sensitive national data would be prohibited, and that agents designed for settings such as national defence and critical information infrastructure would also be prohibited. AP also reported that models with 2 trillion or more parameters, or with certain world-leading capabilities, could be restricted. AP also reported that chip design technologies for some AI processing and memory chips are included.

API Access Versus Overseas Deployment

The controls target overseas deployment of AI models that contain restricted technology. Access through application programming interfaces, websites, apps and software-as-a-service platforms is excluded, the commerce ministry said, as reported by Reuters on 16 October 2026.

Reuters noted that this distinction could let developers such as DeepSeek and Alibaba keep expanding abroad. Open-source technology exports would get simplified licensing, as would Chinese companies that run their own computing centres overseas. Technology already public through open-source releases or academic papers falls outside the controls.

The ministry said, according to Reuters, that most AI technologies would remain freely exportable. It also said the controls are partly meant to prevent misuse of AI, including systems that could autonomously generate and modify malicious software that could threaten critical infrastructure and national security.

Registration Starts Now, Comments Close 15 November

MLex reported that exporters must register certain transfers now. The requirement covers technology ownership transfers, licensing abroad and ownership changes that place control of China-based technology with foreign entities. It applies to transactions already underway and stays in place until the revised catalogue takes effect.

Reuters gives the start as Friday, 16 October 2026, pending final rules. Public comment is open until 15 November 2026, according to MLex and Reuters.

What It Means for US Companies and the Trade Truce

The reporting does not describe how US chip, cloud or software companies would be treated under the draft.

The proposal comes during the US-China trade truce. CommBank, in a note dated 22 September 2026, gave 10 November 2026 as the expiry of China's suspension of additional rare-earth export controls. A roic.ai report dated 25 September 2026 says the truce has been extended to 10 January 2027, and quotes US Trade Representative Jamieson Greer saying export controls are "off the table in these talks."

AP reported on 16 October 2026 that the commerce ministry called the move "necessary" and cited national security as one reason. AP quoted Lian Jye Su, chief analyst at Omdia, saying the move can be seen as a response to Western sovereignty requirements on key technologies. Gary Ng, senior economist at Natixis, said the world is becoming more fragmented in access to technology.