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Export controls on advanced AI chips to China remain in effect, constraining Chinese hyperscaler AI infrastructure investment and development.

US export restrictions force China to accelerate domestic chip development and data center buildout using indigenous technologies.
Trade pressSlicast · September 15, 2026 at 19:35 UTC · US · Source: Human Rights in China | Substack
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On September 11, 2026, the West Kowloon Law Courts in Hong Kong sentenced three former leaders of the dissolved Hong Kong Alliance in Support of Patriotic Democratic Movements of China (HKASPDMC) on national security charges of "inciting subversion of state power." Former chairman Lee Cheuk-yan and former vice-chairwoman Chow Hang-tung were convicted on August 21, while former vice-chairman Albert Ho pleaded guilty. Chow Hang-tung received seven years and three months, Lee Cheuk-yan seven years, and Albert Ho five years and two months in prison. The HKASPDMC was fined HK$1.5 million. The case involved no violence or threats thereof, "nor had the defendant put forward any specific means of implementation or timetable" to end one-party rule in mainland China—a central Alliance tenet—yet the court found the offense "of a serious nature." Standing Committee member Lau Ka-yee stated the organization has always upheld freedom of speech and views the sentence as excessive. The UN Human Rights Office called the sentences "regrettable," while the UN High Commissioner for Human Rights urged they be quashed and Hong Kong's National Security Law brought into line with China's international human rights obligations. Family members called the sentences "totally unjust" and said two defendants will appeal.

Macau will hold its first closed-door national security trial next week against former pro-democracy lawmaker Au Kam San, charged with "subversion." Au became the first person arrested under the expanded law in July 2025, with authorities alleging ties to foreign groups endangering China.

China's Supreme People's Court issued its first nationwide judicial rules on AI disputes, barring unauthorized deepfakes and voice cloning, holding platforms liable for failing to act on infringing content, and addressing algorithmic price discrimination and AI-generated misinformation. A draft anti-corruption law extends enforcement across borders, requiring foreign companies to cooperate with investigations while restricting evidence-sharing with foreign regulators and enabling retaliatory sanctions—creating compliance conflicts for multinationals caught between Chinese restrictions and foreign disclosure requirements like the US FCPA.

A September 1 amendment to China's Lawyers Law formally enshrines "support for CCP leadership" as a legal qualification for practicing law, converting a prior administrative requirement into a statutory political loyalty test that further constrains rights-oriented lawyers.

Since February 2026, Anthropic has identified and blocked unauthorized model distillation activities by seven Chinese AI labs targeting Claude. US agencies (NSA, FBI, CISA) accused DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI of running "aggressive, malicious" campaigns since late 2024 to distill capabilities from Claude, GPT, Gemini, and Grok using fraudulent accounts and proxy evasion tactics; China dismissed the claims as groundless. According to the New York Times, Sugon Group—a Chinese tech company on the US Department of Commerce Entity List—may still be obtaining US advanced AI computing equipment through affiliated companies, overseas supply chains, and Southeast Asian data centers, circumventing tightened US export controls on advanced AI chips to China.

Beijing will ban drone possession within city limits starting mid-November, extending an earlier May sales ban following a fatal June crash when a small aircraft struck a skyscraper. Authorities will offer buyback subsidies. Jury selection began in Huawei's US criminal trial over alleged trade-secret theft, sanctions violations in North Korea and Iran, and surveillance assistance to Iran during 2009 protests; Huawei called the prosecution's narrative "demonstrably false."

Shared "colocation" data centers, where Chinese and American companies often lease adjacent space, create straightforward espionage risks—physical tampering with neighboring servers proves simpler than hacking. Chinese authorities increasingly treat Starlink terminals as a priority border security concern and cross-border communications control issue, using criminal prosecution to punish unauthorized Starlink equipment transport. Corporate employees in mainland China, unable to directly access ChatGPT and Claude, increasingly rely on third-party AI "relay stations" for programming, operations, and troubleshooting assistance—often sending internal code, server logs, VPN configurations, and authentication credentials to these services.

A California cybersecurity firm disclosed a high-risk "zero-click" WeChat worm attack dubbed "WeWorm," where victims need not click links, download files, or answer calls—a single call from a compromised contact enables intrusion.

Growing, persistent pessimism on Chinese social media, driven by economic slowdown and unemployment, continues to spread beyond the reach of official "positive energy" narratives, though AI-powered surveillance tools narrow the space for substantive critique further. July's censorship roundup centered on the deadly Guangxi dam breach and Zhengzhou flood anniversary, a Changsha parking dispute exposing cadre privilege, controversy over razor-wire fencing at Mount Tai, and debate following two Chinese mathematicians' Fields Medal wins.

At least 64 Tibetan Youth Congress activists, including senior leaders, were detained by Delhi Police after staging a late-night protest near the BRICS Summit venue against Xi Jinping's presence. The theatrical release of "Four Rivers and Six Ranges"—depicting the Dalai Lama's 1959 flight from Tibet—was postponed one week in India, reportedly to avoid controversy during Xi's BRICS visit, after Chinese state media denounced the film as "separatist." An international Tibetan studies symposium was cancelled in Nepal, with some observers arguing the decision reflected an overcautious "overinterpretation" of Beijing's signals rather than explicit Chinese demand; the event was moved online instead.

Uyghur Times founder continues documenting online death threats and hacking attempts linked to Chinese state networks, alongside the detention of dozens of relatives in apparent retaliation for his journalism abroad.

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Export controls on advanced AI chips to China… · Slicast