China Targets AI Companions, Cloud & Chips Shift

China is proposing new restrictions on AI companions. This signals a broader regional shift toward tighter governance of emerging technologies across Asia-Pacific. Draft rules released by the Cyberspace Administration of China aim to regulate so-called “humanized interactive AI services”.

Under the proposal, AI companions would be barred from simulating deceased relatives or specific personal relationships for elderly users. Providers would also be required to remind users every two hours that they are interacting with an AI. Also set emotional boundaries, warn about dependency risks, and offer emergency support channels for older users. The draft explicitly discourages the design of AI systems to replace human social interaction or induce psychological reliance. Public feedback on the rules is open until January 25. 

The move comes amid a series of notable technology and infrastructure developments across the region: 

• Australia: The Australian Department of Defence has signed a deal with Google Cloud to deploy an air-gapped hyperscale cloud for sensitive defense workloads, complementing existing sovereign cloud arrangements with Amazon Web Services. 

• Japan: Japan Aerospace Exploration Agency (JAXA) attributed the recent H3 rocket failure to reduced fuel tank pressure, which caused an engine to underperform during second-stage ignition. 

• China: A teardown reported by Nikkei shows that Huawei smartphones now source 57% of their components domestically, underscoring China’s push for supply-chain self-reliance. 

• Papua New Guinea: The country’s telecom regulator, National Information & Communications Technology Authority, has warned citizens against using unlicensed Starlink, threatening legal action after ordering the service to halt operations. 

Together, these developments highlight how governments across the region are asserting stronger control. Thus, reshaping the regulatory landscape for global tech providers and enterprises alike. 

 

Source: 

https://www.theregister.com/2025/12/29/asia_tech_news_roundup/