China’s Judicial Approach to Artificial Intelligence and Cross-Border Corruption

China's Supreme People's Court has emphasized a balanced approach to the development of artificial intelligence (AI) within its judicial system. In a report delivered by President Zhang Jun to the National People’s Congress (NPC), the court affirmed its commitment to fostering innovation while ensuring legal accountability. The court highlighted its careful adjudication of AI-related cases, noting a specific instance where a generative AI service was not deemed to have infringed on rights due to the developer's due diligence. Zhang stated that the court recognizes the "margin for error" inherent in technological innovation, indicating a willingness to allow for mistakes in the pursuit of progress.

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However, the court also underscored the necessity of "resolute legal regulation" to address actions that misuse AI to infringe upon rights or disrupt social order. This dual focus aims to promote the orderly development of the digital economy and AI applications while safeguarding public interests.

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In parallel with judicial developments, local governments in China, particularly in Shenzhen and Wuxi, are actively promoting the adoption of OpenClaw, an AI agent designed to perform various tasks for users. These cities have introduced substantial subsidies—up to 5 million yuan (approximately US$725,000)—to encourage innovative applications of OpenClaw, despite ongoing concerns regarding privacy and security risks associated with its extensive system permissions.

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Security analysts have warned that the software's capabilities, which allow it to perform tasks on behalf of users, could expose them to cyberattacks and privacy breaches. The National Vulnerability Database has advised users to carefully configure permissions to mitigate these risks, highlighting the trade-off between usability and security.

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In a separate but related initiative, China is preparing to enact a law aimed at combating cross-border corruption by Chinese companies operating overseas. This legislation, which is expected to enhance anti-corruption efforts and protect Chinese businesses from foreign legal overreach, was outlined in the NPC's work report. The law will focus on regulating corrupt practices in international business dealings and is seen as a response to what some experts describe as the unfair application of "long-arm jurisdiction" by Western countries.

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Song Wei, a political expert, noted that the law is necessary to address the complexities of cross-border corruption, which often involves diverse actors and illicit transactions. He argued that existing regulations emphasize punishment over prevention, suggesting that the new law will introduce proactive measures to curb corruption before it occurs.

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The Supreme People's Court has reiterated the importance of maintaining judicial fairness in the face of advancing AI technologies. Zhang Jun stated, “The research and development of AI-assisted trial systems must proceed steadily and prudently,” emphasizing that judges must retain ultimate responsibility in judicial processes.

Two Sessions: China’s Top Court Draws Red Line on AI in Courtrooms

While the Supreme People's Court has reported a careful approach to AI regulation, there are concerns about the practical implications of these policies. The balance between fostering innovation and ensuring security remains a contentious issue, with differing opinions on the effectiveness of current measures to protect user privacy and judicial integrity.

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• “Delivering a work report at the fourth session of the 14th National People’s Congress on March 9, Supreme People’s Court President Zhang Jun said the research and development of AI-assisted trial systems must proceed steadily and prudently.” — Zhang Jun, President of the Supreme People's Court

Two Sessions: China’s Top Court Draws Red Line on AI in Courtrooms

• “Granting those permissions gives it the ability to perform various tasks on a user’s behalf, but also puts it above conventional computer system security protections,” — Fang Liang, Analyst at Concordia AI

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• “In recent years, cases of Western countries overusing ‘long-arm jurisdiction’ to curb foreign companies’ participation in global competition have increasingly emerged,” — Song Wei, Dean at the University of Science and Technology Beijing

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