<div id="readability-page-1"><p>China has released draft rules focused on AI systems that act or respond like people. The move shows how the country aims to expand AI while maintaining firm oversight. At the same time, officials remain focused on safety, order, and clearly defined limits.</p><h3>Claim 70% Off TipRanks This Holiday Season</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p>Under the proposal, users must be told they are speaking with AI when they log in. In addition, platforms must repeat that notice every two hours during use. They must also step in when signs of user reliance appear.</p> <p>Providers are also required to build security and ethics checks into these systems. AI behavior must align with China's stated social values. Content that risks national safety or public order would not be allowed.</p> <h2><strong>What It Means for AI Companies and Investors</strong></h2> <p>Before launching human-like AI tools, firms must file reports with regulators. They must also submit updates once a service reaches one million users. </p> <p>As a result, larger firms are better positioned to meet these demands. Companies like Baidu (BIDU), Alibaba Group (BABA), and Tencent (TCEHY) already operate under close oversight and can manage added reviews and filings. Smaller AI firms may face higher costs and slower product launches.</p> <p>Meanwhile, China continues to invest heavily in AI as a growth driver. However, the rules show that consumer-facing AI will face closer checks. For investors, this points to steady support for leading AI companies alongside tighter limits on how human-like AI systems can become. Overall, China is promoting AI growth while setting firm guardrails, a balance that is likely to shape how AI products develop in its market going forward.</p> <p>Using TipRanks' Comparison Tool, we have gathered all three Chinese AI stocks appearing in the piece. This is an extremely useful tool for investors to gain an in-depth look at each stock and the broader Chinese AI industry.</p></div>

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<p>China has released draft rules for AI systems that mimic human behavior, emphasizing safety, order, and alignment with social values. The rules require user notifications, security checks, and regulatory filings, impacting AI companies like Baidu, Alibaba, and Tencent. Larger firms are better positioned to comply, while smaller firms may face challenges. The regulations aim to balance AI growth with oversight, shaping the future of AI in China.</p>

- China has introduced draft rules for AI systems that simulate human interaction, emphasizing strong oversight while promoting growth.  
- Users must be informed they are engaging with AI, and safety measures are mandated, particularly for user reliance and alignment with social values.  
- Larger companies like Baidu and Alibaba are better positioned to navigate regulatory requirements, whereas smaller firms may struggle with compliance costs, indicating that tighter regulations will influence AI development in China.

China Tightens Oversight of Human-Like AI