China Advances AI Lifecycle Legislation, Introduces Regulatory Sandbox

Dongcha Beating AI News, November 3: The National Development and Reform Commission stated that it will accelerate the advancement of comprehensive AI legislation, establishing safety standards and ethical guidelines covering the entire lifecycle—from data, computing power, and algorithms to specific applications—including research and development and deployment. AI developers and operators will be encouraged to promptly disclose security risks and proactively report incidents and vulnerabilities. While regulation is tightening, space for experimentation will be provided to enterprises. The new rules will include a reasonable transition period and support the establishment of “regulatory sandboxes” across various industries, allowing companies to test new technologies in controlled environments. These sandboxes will be accompanied by mechanisms for application, testing, usage, and exit, with regulatory frameworks subject to regular evaluation and timely adjustment. In addition to model and technical security, regulation will also focus on AI’s impact on people, including monitoring risks of job displacement by AI, improving social security systems, and preventing user addiction to and emotional dependence on AI. Deepfakes, algorithmic discrimination, and privacy leaks are also within the scope of governance. China introduced regulations for public-facing generative AI services as early as 2023, and in May of this year, included comprehensive legislation in the State Council’s work plan. Regulatory sandboxes have previously been piloted in certain AI service sectors.