The draft rules, which were published at the weekend by the Cyberspace Administration of China (CAC), include measures to protect children. They include requiring AI firms to offer personalised settings, have time limits on usage and getting consent from guardians before providing emotional companionship services.
Chatbot operators must have a human take over any conversation related to suicide or self-harm and immediately notify the user's guardian or an emergency contact, the administration said.
AI providers must ensure that their services do not generate or share "content that endangers national security, damages national honour and interests [or] undermines national unity", the statement said.
The CAC said it encourages the adoption of AI, such as to promote local culture and create tools for companionship for the elderly, provided that the technology is safe and reliable. It also called for feedback from the public.
Chinese AI firm DeepSeek made headlines worldwide this year after it topped app download charts.
This month, two Chinese startups Z.ai and Minimax, which together have tens of millions of users, announced plans to list on the stock market.
The technology has quickly gained huge numbers of subscribers with some using it for companionship or therapy.