China drafts rules barring AI virtual companions for minors

Chinese regulators published draft Regulations on Safeguarding Minors' Healthy and Safe Use of the Internet. The draft would bar platforms from offering minors 'virtual relatives or virtual companions' or virtual intimate relationship services, require better identification of minor users, and ban algorithms that induce emotional dependence, addiction or excessive spending. Comments were open until 17 October.

What it means for business: companion and chatbot services available in China will need age controls if the draft is finalised.