China's recently-announced interim regulation on generative artificial intelligence (AI) services shows that the country is charting a unique path in regulating the sector, an approach that contrasts with the EU's risk-focused measures such as its AI Liability Directive and draft AI legislations.

This perspective was shared by Xu Ke, executive director of the Digital Economy and Legal Innovation Research Center at the University of International Business and Economics, in an article published on the official WeChat channel of the country's internet watchdog the Cyberspace Administration of China (CAC).

On Thursday, the CAC, along with the National Development and Reform Commission, the Ministry of Science and Technology, and four other departments, announced the interim legislation that aims to strike a balance between innovation and safety. The regulation, set to take effect on August 15, mandates transparency in AI-generated content and respect for individual rights.

A key feature of the regulation is its distinction between AI "services" and "technology," Xu pointed out. By focusing on services, China's regulation aims to manage how AI is applied and used, rather than how it is developed. This approach allows for continued innovation and experimentation in AI technology development, avoiding the potential stifling effect of overregulation. Thus, the move ensures a more holistic and scenario-specific governance of AI, said Xu.

Meanwhile, Zhang Zhen, a senior engineer at the National Computer Network and Information Security Management Center, echoed this perspective in an article, highlighting that China's regulation shows a balanced approach to AI regulation. 

By mandating an algorithm register, safety assessments, and a complaint reporting system, the regulations clearly define legal responsibilities, said Zhang.

This approach underscores China's dedication to nurturing innovation while safeguarding privacy and security and serves as a robust protective framework, ensuring that the pursuit of innovation respects both individual and societal safety and privacy, said Zhang.

In a related development, Tesla CEO Elon Musk reportedly said he believes China is interested in participating in an international AI regulatory framework, based on conversations he had during his visit a few weeks ago. "China is definitely interested in working in a cooperative international framework for AI regulation," Musk said, according to Reuters.