China drafts export controls on AI models to balance security and tech race

China has expanded its export control regime to include AI-related technologies, solar technologies, machinery, and dual-use drones, effective November 18. This move, confirmed by multiple sources, signals a strategic broadening of restrictions beyond semiconductors, with specific controls on long-range UAVs and construction equipment to disputed regions. Beijing has also publicly justified rare-earth export restrictions against Japan, citing remilitarization concerns, and these controls are impacting critical supply chains.