Beijing's next move on AI law: what counsel should prepare for
China's AI rulebook may be getting a major upgrade. Shi Jianzhong - a senior government adviser and vice president of China University of Political Science and Law - has urged lawmakers to advance AI legislation that supports "healthy development," via an op-ed in the Communist Party's official legal journal, Legal Daily.
The signal is clear: broader, clearer, and more enforceable rules are back on the agenda. If your organization builds, deploys, or sources AI tied to China, you'll want to get ahead of it.
Why this matters for legal teams
- Expectation-setting: a framework law could unify fragmented obligations and raise the baseline for compliance.
- Scope expansion: duties may extend beyond model providers to deployers, distributors, and enterprise buyers.
- Enforcement clarity: standardized filings, audits, and liabilities would tighten operational risk.
What could be in scope
- Risk-tiered obligations for general-purpose models and high-risk use cases.
- Dataset provenance, licensing, and record-keeping; stronger copyright and data controls.
- Algorithm filing/registration, security assessments, and third-party conformity checks.
- Content controls: deepfake labeling, watermarking, traceability, and takedown mechanics.
- Incident reporting, model evals/red-teaming, and post-deployment monitoring.
- Liability split across providers, deployers, and platform hosts; insurance options.
- Cross-border data/model export gates aligned with national security review.
- Public procurement standards for AI in government and critical sectors.
How it fits with existing rules
Expect any new statute to sit on top of current instruments rather than replace them. That includes deep synthesis rules for synthetic media and watermarking, algorithmic recommendation controls, and data/privacy statutes like the PIPL.
- Provisions on Deep Synthesis of Internet Information Services
- Personal Information Protection Law (PIPL)
Action checklist for in-house counsel and compliance
- Map your AI footprint in China: models used, vendors, data flows, and user touchpoints.
- Tighten data governance: PIPL consent logic, sensitive-data gates, retention, and cross-border transfer mechanisms.
- Stand up model documentation: training data sources, licenses, eval results, limitations, and change logs.
- Prepare for filings/audits: assign system owners, keep versioned policies, and maintain evidence trails.
- Implement safeguards: human-in-the-loop for high-risk outputs, incident playbooks, and watermarking where required.
- Update contracts: allocate AI-specific warranties, indemnities, IP rights, and regulatory cooperation clauses with vendors and customers.
- Review deployment UX: user notices, consent flows, appeal channels, and content labeling.
- Train internal teams: legal, product, security, and procurement on AI obligations and escalation paths.
Open questions to monitor
- How far a new law will reach beyond consumer-facing services to enterprise and developer tools.
- Liability allocation between foundation model providers and downstream deployers.
- Standard-setting: which bodies will issue technical benchmarks for safety and watermarking.
- Extraterritorial effects on firms offering AI into China from abroad.
- Penalties and remediation timelines tied to audits and incident reporting.
Signals to watch next
- NPC Standing Committee agendas and public consultation drafts.
- Joint notices from CAC, MIIT, SAMR, and the Supreme People's Court on enforcement coordination and IP.
- Sector rules in finance, healthcare, education, and critical infrastructure referencing AI controls.
Practical next step
If your team is building an AI compliance program from scratch or leveling up existing controls, a structured training path can shorten the lift. See curated options by role here: AI courses by job function.
Bottom line: the policy window is open. Use it to lock in documentation, contracts, and controls so you're ready when draft text turns into enforceable obligations.
Your membership also unlocks:
