China’s industry ministry has revealed draft guidelines for standardizing the artificial intelligence industry, according to a report by Reuters that cited the ministry’s website.

Shares of Chinese tech companies specializing in AI, such as Alibaba (NYSE:BABA), experienced a reduction of approximately 3%, while Baidu (NASDAQ:BIDU) saw a premarket decline of approximately 5% on Wednesday.

The proposed draft aims to establish over 50 national and industry-wide standards for AI by 2026. The guidelines also stated that China aims to contribute to the development of over 20 international standards for AI by that time, as reported.

In October 2023, Chinese President Xi Jinping announced the country’s plan to initiate AI governance from various perspectives, distinguishing it from the approach adopted by the U.S.

Generative AI services have gained significant attention since the launch of OpenAI’s ChatGPT in 2022. Chinese companies such as Alibaba (BABA), Baidu (BIDU), Tencent (OTCPK:TCEHY) (OTCPK:TCTZF), as well as startups like Baichuan and Zhipu, are developing their own AI models to compete with large language models (LLMs) from entities like Microsoft (MSFT)-backed OpenAI and others.

The intent behind the draft guidelines is to “seize the early opportunities arising from the development of the AI industry,” as indicated by the ministry in the report.

In addition, the ministry has expressed that 60% of these prospective standards should be designed to support “general key technologies and application development projects.”

The proposed draft also aims to have over 1,000 companies adopt and advocate for these new standards.

Companies worldwide are developing their own LLMs. Meta Platforms’ (META) Emu Video, Emu Edit, AudioCraft, SeamlessM4T, and Llama 2; Alibaba’s (BABA) Tongyi Qianwen 2.0 and Tongyi Wanxiang; Baidu’s (BIDU) Ernie Bot; OpenAI’s text-to-image tool DALL·E 3; Alphabet (GOOG) (GOOGL) unit Google’s Bard; and Samsung’s (OTCPK:SSNLF) Gauss are a few of the LLMs under development, among many others.