China has proposed limiting the export of 40 types of technologies in the field of AI and semiconductors
The Ministry of Commerce of the People’s Republic of China has published a draft updated list of technologies subject to strict export controls. The initiative will address 40 key areas in the field of artificial intelligence and semiconductors, including deep learning algorithms, neural network chip architectures and quantum computing components. The large-scaleChina restriction on the export of AI technologies by 2026becomes Beijing’s most retaliatory step to protect its technological sovereignty in the context of the ongoing confrontation with the West.
What exactly is covered by the new export restrictions?
The document divides technologies blocked for free export into three key categories: architectural specifications of advanced processors, know-how in the field of 3D chip packaging and proprietary machine learning models. The following are directly prohibited from transferring abroad without special licenses:
- Generative AI algorithms: specialized neural network architectures for the financial sector and modeling systems.
- Semiconductor materials: technologies for creating high-purity substrates and components for EUV lithography.
- DePIN hardware solutions: specialized processors for distributed computing nodes.
How is the cryptocurrency and decentralized AI market reacting?
The regulator’s announcement caused immediate turbulence in the sector of Web3 projects based on artificial intelligence. In 2024-2025, the crypto industry made a major shift to combining blockchain and AI, but Beijing’s new measures pose risks of hardware shortages.
Quotations of key tokens in the Decentralized AI sector – including Bittensor (TAO), Render (RENDER) and Artificial Superintelligence Alliance (FET) – showed a local decline of 5-7%. Operators of DePIN networks and mining infrastructures have expressed concerns about potential increases in equipment prices and delays in the supply of new generation ASIC chips.
What consequences will Beijing’s initiative have for Web3?
Tightening export conditions will inevitably redraw the supply map of computing equipment for decentralized ecosystems:
| Sphere of influence | Predicted effect |
|---|---|
| DePIN networks | Increasing cost of renting graphics power due to a shortage of nodes. |
| PoW Mining | Accelerating the transfer of ASIC assembly factories to other regions of Asia. |
| ZK-technologies | Increasing the development time for hardware ZK accelerators. |
The proposed restrictions are expected to come into full effect before the end of the fourth quarter of 2026, leaving market participants a narrow window to diversify supply chains.
