China tightens regulations on AI-powered digital humans

The Cyberspace Administration of China (CAC) issued new rules to govern the digital human AI sector, banning services offering minors virtual intimate relationships or content that encourages extreme emotions or harmful habits. The industry, valued at 4.1 billion yuan ($600 million) in 2024 with 85% year-on-year growth, features AI avatars widely used in social media product promotions. This constitutes a structural governance shift for synthetic media and embodied AI deployment in China, home to leading developers including ByteDance, Tencent, and Alibaba.