Overview of the Legal Requirements for Offering AI Services in China

Summary

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• There are a number of layers of rules which must be understood and navigated when offering AI services in China, with three key regulations
• Content regulation and censorship is a vital, and often unique, characteristic of the Chinese market
• In order to ensure transparency, accountability, and security in the deployment of AI technology, China uniquely requires filing of AI algorithms and generative AI services
• Other gateway to service provision are an additional security assessment for AI services that contains "public opinion attributes" or entails "social mobilization capability", and ethics review

China is one of the most dynamic markets in the AI-related sector, driven by rapid technological advancements and significant investments. Moreover, China was one of the first countries to start imposing regulations on AI technologies and services. Compared with the European Union's risk-based regulatory approach on AI services, as reflected by the AI Act, China's AI regulations are primarily focused on national security, social stability, algorithmic transparency and contents censorship, with stringent measures on data privacy and cybersecurity enforced by agencies such as the Cyberspace Administration of China (CAC). Currently, China's regulatory framework for offering AI services is characterized by a robust and evolving set of regulations and guidelines, addressing various aspects such as data privacy, cybersecurity, the prevention of bias and discrimination in AI algorithms and the monitoring and control of the AI-generated contents.

Under China's Cybersecurity Law, AI service providers must adhere to stringent cybersecurity standards to protect the integrity and security of their systems, models, and data