China is developing a licensing system to regulate the release of generative artificial intelligence (AI) systems, requiring companies to obtain licenses before launching such technologies. The move by the Cyberspace Administration of China (CAC) aims to strike a balance between promoting local technological advancements and controlling content dissemination.

These licensing requirements supplement stricter draft regulations released in April, which have allowed companies more flexibility. Under the new rules, companies will have 10 working days to register their AI products with Chinese authorities after their launch.

The latest regulations demonstrate China's ongoing challenge in reconciling its ambition to develop AI technology with its existing censorship systems. An individual familiar with the CAC's plans stated that if Beijing intends to control and censor AI-generated information entirely, companies would need prior approval from authorities. However, the person added that the regulations should not hinder domestic companies in the technological race.

China is also addressing the rise of generative AI systems in its own way. According to an April draft regulation, AI content must align with "core socialist values" and should not contain anything that undermines state power or national unity, supports the overthrow of the socialist system, or incites division within the country.

Chinese companies like Baidu and Alibaba, which have launched generative AI applications this year, have been in communication with regulators to ensure compliance with the rules. CAC Director Zhuang Roq emphasized the need to ensure that AI is "reliable and controllable" due to concerns about data usage.

Governments and authorities worldwide are also racing to establish regulations to mitigate potential misuse of AI technology. The European Union has proposed stringent regulations, triggering protests from companies and executives in the region. The United States is engaged in discussions regarding AI control measures, while the United Kingdom is currently conducting a review of AI technology.