As artificial intelligence technologies blur the line between reality and simulation, China’s cyberspace regulator has moved to establish clear boundaries for one of the fastest-growing segments of the AI economy: digital humans. On April 3, 2026, the Cyberspace Administration of China (CAC) released a comprehensive draft regulation aimed at strengthening oversight of digital human services, signaling Beijing’s intent to maintain strict control over how AI-generated personas are created, deployed, and interacted with online.
The proposed rules, which are open for public comment until May 6, define digital humans as virtual figures that exist in nonphysical environments and simulate human appearance and behavior using technologies such as computer graphics, digital image processing, and AI. These avatars can be based on real people or generated entirely by algorithms, capable of replicating voices, actions, interactivity, and even personality traits.
The Booming Digital Human Economy
The regulatory move comes in response to the explosive growth of the digital human industry in China. Over the past two years, AI-driven avatars have become ubiquitous across Chinese e-commerce platforms, social media, and public services. Virtual influencers host 24/7 livestreaming sales events on Taobao and Douyin, digital news anchors deliver broadcasts for state media, and AI companions offer personalized interaction on social apps.
While this technology has injected new momentum into commercial marketing and entertainment, it has also raised significant concerns over misuse. Authorities have noted a rise in incidents involving the impersonation of public figures, fraud, misleading advertising, and violations of personal rights. The new draft rules are designed to address these risks by establishing clear red lines for the industry.
Mandatory Labeling and Consent
A cornerstone of the proposed regulation is the requirement for transparency. Service providers, users, and content distribution platforms would be mandated to clearly label digital humans with prominent identifiers throughout their display. This aligns with China’s existing rules on AI-generated content, ensuring that consumers are always aware when they are interacting with an algorithm rather than a real person.
Equally important are the strict provisions regarding personal information and consent. The draft requires explicit consent before using an individual’s likeness, voice, or other personal data to create a digital human. It explicitly prohibits activities that infringe on rights such as reputation, privacy, and intellectual property, or using virtual humans to bypass identity verification systems. This is a direct response to the growing problem of AI deepfakes being used to bypass facial recognition security measures in financial and government applications.
Protecting Minors and Maintaining Social Order
The regulations also take a hard line on content that could negatively impact younger users. The draft sets strict limits on services involving minors, specifically banning the provision of “virtual intimate relationships”—such as virtual family members or romantic partners—to those under 18. It also prohibits services that may induce excessive spending, encourage harmful behavior, or negatively affect their mental and physical health.
Beyond minor protection, the rules reinforce Beijing’s broader content controls. Digital humans are prohibited from disseminating content that endangers national security, incites subversion of state power, promotes secession, or undermines national unity. Service providers are also advised to prevent content that is sexually suggestive, depicts horror, or incites discrimination. Interestingly, the draft encourages providers to take necessary measures to intervene and provide professional assistance when users exhibit suicidal or self-harming tendencies during interactions with AI avatars.
Full-Chain Governance
Experts note that the draft reflects a shift toward “full-chain governance,” extending responsibility beyond just the platforms to include technology providers and end users. As AI tools become more accessible, allowing ordinary users to create and publish digital humans, the CAC is attempting to establish a clear allocation of responsibilities among all parties involved.
The regulation outlines a framework covering the entire life cycle of digital human services, from creation and operation to dissemination. It introduces “service users” as key actors bearing responsibilities similar to providers in areas such as content review, data handling, and risk response. This comprehensive approach indicates that Beijing views the governance of digital virtual humans not merely as an industry norm issue, but as a strategic scientific problem critical to cyberspace security and the high-quality development of the digital economy.
As China pushes forward with its ambitious plans to aggressively adopt AI throughout its economy, these draft rules represent a calculated effort to balance innovation with strict social and political control. The goal is to support the use of digital humans in governance and public services while ensuring the technology aligns with the country’s socialist values and security imperatives.