If the U.S. Does It, Then We Will Too... China Reviews Strengthening Export Controls on Domestic AI and Semiconductor Technologies

China is reportedly reviewing measures to classify domestic AI models and semiconductors as national strategic assets, following the U.S. imposition of export restrictions on advanced AI semiconductors and manufacturing equipment. If China proceeds with direct control over AI technology exports, the U.S.-China technological rivalry could expand beyond supply chains to encompass AI models themselves. According to blockchain media CryptoPoltan, Chinese authorities are drafting export controls for domestic AI and semiconductor technologies, aiming to establish legal frameworks while bolstering industrial competitiveness. This shift reflects China's strategic pivot from relying on foreign technology to managing its own AI, semiconductor, and robotics capabilities as core national assets, a trend noted by institutions including the CSIS, MERICS, and Rhodium Group. U.S. export controls on semiconductors and advanced technologies have contributed to a 9.8% decline in China's chip production since 2022, yet some analysts argue these restrictions have accelerated domestic investment and supply chain reforms. China is expanding its investments beyond semiconductors to include foundational AI models, infrastructure, and robotics. Legal frameworks supporting export controls are also strengthening, with new regulations from the State Council addressing industrial supply chain security and foreign jurisdiction challenges.