China reveals a regulation draft for AI industry 📣

China's industry ministry has released draft guidelines to standardize the artificial intelligence industry, as reported by Reuters. This move has impacted Chinese AI-focused tech stocks, including Alibaba and Baidu.

The draft aims to establish over 50 national and industry-wide AI standards by 2026. This initiative aligns with Chinese President Xi Jinping's October 2023 statement about governing AI from multiple perspectives, differing from the US approach. The guidelines are part of China's strategy to capitalize on AI industry development, with an emphasis on general key technologies and application development projects. The plan also includes getting over 1,000 companies to adopt these standards. This development comes as global companies, including Meta Platforms, Alibaba, Baidu, OpenAI, Google, Samsung, and Getty Images, are actively developing their own large language models (LLMs).

Both Alibaba and Baidu shares are experiencing significant losses today. The declines are due to the worsening situation of the Chinese economy and the proposal to impose regulations and standards on the AI sector by the government in China.

Baidu (BIDU.US) shares are losing nearly 3.00%, approaching around $100 per share. If bulls fail to lift the price above $104, the next support levels could be around $94 or even $77 per share. Source: xStation 5

Alibaba (BABA.US) shares are down over 1.50% today and are in a similar situation. The current stock price is nearing the local low of 2022, around $60-63 per share. Source: xStation 5