#24 Asia AI Policy Monitor
IP rules for AI in China, Japan & "Ghibilification" AI Issues, Automated Decisions in Malaysia, North Korean AI Cyberscams, South Australia Deepfake Legislation and More!
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Intellectual Property
In short: IP rules for AI in Asia continue to develop fast in China while the “Ghibli” craze from last month are causing debate among industry and especially lawmakers in Japan. Expect China to continue adjudicated advanced AI & IP matters, as it has the world’s largest IP docket, and expect Japan to innovate on protecting its creative industries with proposed legislation “style of” rights protections.
A court in China’s Zhejiang province found that AI generated images would not receive copyright protection where there was not sufficient original input from a human author/prompter.
On March 19, 2025, the Chinese Zhangjiagang Court ruled in a recent AIGC copyright infringement case Feng v. Dongshan Company that, the plaintiff's AI-generated pictures lacked enough original authorship to be copyrightable and that the prompts were not copyrightable either. Unlike the previous AIGC copyrightability cases where the local Chinese courts recognized the original authorship in the AI-generated work, this is the first Chinese case under which AI-generated pictures were denied copyright protection.
China’s Guangdong courts issue guidance on how to adjudicate AI copyright cases.
According to the Opinions on Promoting Artificial Intelligence Technology Innovation and Industrial Development through High-Quality Intellectual Property Trial Work, judges must accurately define the generated content's nature and ownership and rigorously examine corresponding evidence.
Judges must assess the human creative input in AI-generated content and determine if it meets copyright standards in AI-related cases, as stated in the document.
Japan and Singapore have liberal copyright rules allowing for Text and Data Mining, but encourage licensing deals for creators and the AI industry, says Seth Hays, our Editor for Campaign Asia, the leading ad-industry news outlet.
Hays believes the best path forward is to enhance existing intellectual property (IP) laws, particularly underdeveloped areas such as Rights of Publicity or Likeness (to combat deepfakes), trade dress (protecting the look and feel of businesses), trademark dilution, passing off, and unfair competition. “Many countries don’t recognise these species of IP, and should develop them,” he says, emphasising the need for courts, especially in common law jurisdictions, to update jurisprudence for the 21st century.
Japanese lawmakers discuss the copyright issues surrounding the Ghiblification craze in genAI images.
Gifu Prefecture representative and Constitutional Democratic Party member Masato Imai brought up the topic with Hirohika Nakahara, the Director-General for Japan’s Education, Culture, Sports, Science and Technology Strategy.
“There has been discussion of whether the so-called ‘Ghiblification,’ making AI-generated images in the Ghibli style, constitutes copyright violation. Under the current interpretation of the law, just how legal is it?” Imai asked.
Privacy
In short: Active privacy regulators like Korea will be the first line of action towards AI companies in Asia, as per the Deepseek investigation. Practical concerns around automated decision-making and bias continue to develop in Malaysia, as other countries have also invited views on these issues. Privacy regulators in Asia have proven they will continue to address empirical AI harms.
Singapore, Italy and Brazil’s privacy regulators spoke to IAPP reporters on their views of cross-border AI regulation.
"We've seen a common vocabulary emerge around fairness, robustness, explainability, interpretability, transparency, accountability and data security and so on," he said.
Singapore also works closely with AI safety institutes and regional partners, such as the Association of Southeast Asian Nations and the Forum of Small States to drive policy. It has run joint exercises with Japan testing large language models to influence how model testing is conducted.
Malaysia’s Personal Data Protection Department released a consultation paper on on automated decision making and profiling, as part of a public consultation until May 19.
It is proposed that ADM (including profiling) is regulated only if it brings legal implications or significant effects on data subjects…Data subjects must be informed of automated decision-making, including meaningful information about the logic involved….Data controllers must provide justification for decisions and act on review requests within 21 days (extendable by 14 days for complex cases).
South Korea’s privacy regulator is working with local governments to strengthen the use of pseudonymised data use in AI through regional support centers.
The Pseudonymous Information Utilization Support Center is an organization (currently a total of 7 locations**) operated through collaboration between the Personal Information Protection Commission and local governments to promote regional balanced development of the data economy based on pseudonymous information*, and comprehensively provides education, counseling, and consulting related to pseudonymization.
Korea’s privacy regulator also investigated Deepseek’s compliance with data privacy rules.
DeepSeek transferred personal information to multiple companies in China and the United States (for purposes such as service improvement, security, and customer service response), but did not obtain consent from users for overseas transfer at the time of service launch or disclose it in its processing policy. In particular, DeepSeek was transferring information entered by users into AI (artificial intelligence) prompts, in addition to device information, network information, and app information, to Beijing Volcano Engine Technology Co., Ltd. (hereinafter referred to as “Volcano”)…
(Initially), DeepSeek, similar to other AI (artificial intelligence) businesses, was using public data (open source data, web-collected data, etc.) and the content entered by users into prompts for AI (artificial intelligence) development and learning. However, in the case of AI (artificial intelligence) prompt input, there was no function for users to refuse the use of AI (artificial intelligence) development and learning, and the processing policy and terms of use only indicated 'service provision and improvement', so it cannot be said that there was sufficient explanation or notice.
Cybersecurity
In short: China and North Korean hackers lead in the use and deployment of AI, and targets also largely remain in the Asia-Pacific. More analysis needs to be done on the role of AI in cyberscam centers which use forced labor from around the region. International coordination could improve in tackling these issues from both government and industry.
Wired reports on North Korea’s extensive use of AI in employment scams.
Wijckmans didn’t know it yet, but he’d stumbled onto the edges of an audacious, global cybercrime operation. He’d unwittingly made contact with an army of seemingly unassuming IT workers, deployed to work remotely for American and European companies under false identities, all to bankroll the government of North Korea.
The US FBI claims that China is using AI in every part of cyber attacks on US infrastructure.
The biggest threat to US critical infrastructure, according to FBI Deputy Assistant Director Cynthia Kaiser, can be summed up in one word: "China."
In an interview with The Register during RSA Conference, she said Chinese government-backed crews are testing out AI in every stage of the attack chain. This isn't to say that they're succeeding, but it does make them "more efficient, or might make them a little faster," Kaiser added.
The ongoing threat from Beijing-backed digital intruders burrowing into America's critical facilities likely isn't a huge shock to anyone who can name at least two of the Typhoons that have come to light between last year's RSAC and this year's infosec event.
Environment
In short: Many countries in Asia shun nuclear power, especially after the Fukushima disaster, but these countries also want a piece of the AI economy, which requires major compute energy intensity. Asia should examine where green power can be leveraged economically, and how cross-border data rules can be developed to foster efficient green AI compute, but also develop responsible nuclear energy capabilities, given the region’s net energy imports.
Australia’s leading think tank published a report on how nuclear power should be an option for the country for its long-term AI ambitions.
Although small-scale nuclear power technology has been proven in many submarines cruising around the world—and some are questioning if Labor’s plans will even get Australia to net zero by 2050—we are missing out on a massive national security and economic opportunity for Australia.
The training of AI models requires significant power. OpenAI’s GPT-4 was estimated to use 50 times more electricity to train than its GPT-3 model. This trend is likely to continue for frontier models. By 2030, power consumption by data centres is set to double, and AI is forecast to consume more than 9 percent of total US power generation.
NVIDIA’s CEO calls for Japan to create energy capacity.
Resource-poor Japan is weighing data centers’ hunger for electricity against the challenges of restarting nuclear reactors that were shuttered following the Fukushima disaster, as well as boosting imports of pricey fossil fuels. Japan would consider investing in a $44 billion liquefied natural gas project in Alaska as part of a deal in negotiating a trade deal with the U.S., Ishiba has said.
Governance
In short: AI promotion and adoption continues in the region, where public sentiment is generally more welcoming to AI than peers in the West, as seen with Taiwan or China’s practical support for AI with local governments and industry. Practical harms of AI will be governed, such as deepfake non-consensual imagery and other harms. Japan will likely be the next country in Asia to have comprehensive AI legislation, following South Korea.
South Australia’s parliament debate deepfake legislation.
South Australia's Parliament is debating laws that would ban the use of artificial intelligence to generate explicit deepfake content. The bill is a collaboration between Upper House MLC Connie Bonaros and the state government that seeks to outlaw violent or sexually explicit deepfake images, audio or video. State attorney-general Kyam Maher says the state's criminal code already covers the distrubution of deepfakes - but this legislation would ensure content is captured that is wholly created by AI. He says authorities have estimated as much as 95 percent of deepfakes are non-consensual porn, and that 99 per cent of the victims are women.
Taiwan’s Ministry of Digital Affairs works with local governments to implement AI services.
During the event, MODA introduced key highlights from the Public Sector AI Playbook," covering implementation procedure, data governance, and impact assessment frameworks. The reference aims to serve as a practical guide for agencies in developing their AI projects and help ensure smooth policy implementation. AI experts were also invited to lead hands-on sessions, equipping local information managers with the essential skills to apply AI in project proposals and administrative processes and enhancing their ability to convert technical solutions into action.
The New Taipei City Government shared its achievements in smart governance, including establishing an "AI Resource Pool" and a "Crisis Early Warning System," demonstrating the tangible impact of AI in urban management. Attendees also visited the National Center for Film and Audiovisual Culture and the Criminal Forensics Center to witness the application of AI in digital archiving and forensic intelligence.
Japan’s lower house passed the AI Promotion Bill.
The bill calls for setting up a task force, to be led by the prime minister, to craft a basic plan to promote AI development in Japan, widely viewed as lagging behind Europe and the United States in the area.
The legislation also warns that if AI technology is used for illegal purposes or in inappropriate ways, it could facilitate crimes, personal information theft and copyright infringement.
China’s Cyber Administration started a three month enforcement action to “clean-up” AI abuses, including intellectual property infringement.
On April 30, 2025, China’s Cyberspace Administration (CAC) launched a 3-month campaign to “clear up and rectify the abuse of AI technology” including using information that infringes on others’ intellectual property rights, privacy rights and other rights. Per the Cyberspace Administration, “the first phase will strengthen the source governance of AI technology, clean up and rectify illegal AI applications, strengthen AI generation and synthesis technology and content identification management, and promote website platforms to improve their detection and identification capabilities.
China’s Xi Jinping emphasized during the twentieth collective study session of the CPC Central Committee Political Bureau that China must promote the healthy and orderly development of artificial intelligence.
Xi Jinping stressed that in order to seize the initiative and gain an advantage in the field of artificial intelligence, breakthroughs must be made in basic theories, methods, tools, etc. We must continue to strengthen basic research, concentrate on conquering core technologies such as high-end chips and basic software, and build an independent, controllable, and collaborative artificial intelligence basic software and hardware system. Use artificial intelligence to lead the paradigm shift in scientific research and accelerate scientific and technological innovation breakthroughs in various fields.
Additionally, the China’s President visited a large AI model accelerator in Shanghai, emphasizing its role in the Global South’s technology sector.
In the incubator, Xi joined a salon themed on the autonomous evolution of next-generation intelligent agents, engaging in discussions with young innovators on the spot.
"AI is a nascent industry, and it's also an industry that belongs to young people," said Xi…
"Despite external pressure and technological blockades, China has the capability to leverage AI technology to drive leapfrog economic growth and significantly enhance productivity," Liang Zheng, vice dean of the Institute for AI International Governance at Tsinghua University, told Xinhua.
"Amid the fragmented and exclusive AI governance landscape, China can play a crucial role in promoting global cooperation," added Liang.
Calling AI a global public good, the Chinese leadership has pledged to help Global South nations build tech capacity, thus narrowing the global AI divide.
Multilateral
In short: China leads the region in multi-lateral AI cooperation, in particular in BRICS+, and as part of the country’s outreach following trade sanctions and tariff wars from the US. This cooperation differs in character from Japan’s posture on AI cooperation, which has focused on tangible governance mechanisms, such as the OECD and G7 Hiroshima Process.
BRICS+ countries signed a declaration on AI.
They expressed appreciation for the valuable technical discussions on key topics such as digital transformation of industry, intelligent manufacturing and robotics (IMR), SME development, sovereign Artificial Intelligence (AI) for digital industrialization, bio-based industry, circular economy, photovoltaic industry and medical devices. They reaffirmed their commitment to enhance and facilitate cooperation in these areas, with a special focus on inclusive training and capacity building, aiming at the continuous technological upgrading of the industrial sectors of member countries. They encouraged intra-BRICS cooperation through the PartNIR BRICS Innovation Hub (BPIC), the BRICS Industrial Competence Center (BCIC) and the BRICS Startup Forum, to be hosted by India in 2025.
China and Uzbekistan agree to cooperate on multiple areas including AI.
China is ready to work together with Uzbekistan to accelerate cooperation in key areas, promote the early completion and operation of the China-Kyrgyzstan-Uzbekistan railway, expand cooperation in emerging fields such as artificial intelligence, digital trade, and climate change, and create an even more impressive "report card" of cooperation achievements.
China and Vietnam signed agreements on AI following a visit by President Xi to the country.
The priority for both sides is fostering collaboration in emerging sectors like artificial intelligence, clean energy, sustainable development, and the digital economy. This will involve supporting the working group’s efforts to investigate the Vietnam–China cross-border economic cooperation zone model while exploring a pilot for a cross-border economic cooperation model and collaboratively developing safe and stable industrial and supply chains.
APEC (including the following Asian countries: Australia, Brunei Darussalam, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, the Philippines, Singapore, Taiwan, Thailand, and Vietnam) released a brief on AI development in the bloc.
In response, APEC economies are taking varied approaches—introducing dedicated AI regulations, adapting existing legal frameworks, or prioritizing guidelines and standards to manage associated risks. AI is also becoming a recurring feature in Free Trade Agreements and Digital Economy Agreements. Against this backdrop, APEC is well-positioned to promote inclusive, transparent, and innovation-friendly AI ecosystems across the Asia-Pacific…
APEC can play a pivotal role in coordinating AI regulatory approaches across the Asia-Pacific region, emphasising the urgent need for cohesive, consistent, and interoperable legal and policy frameworks. This includes serving as a platform, through various APEC committees, to address critical AI-related issues; expanding commitments to AI in FTAs and DEAs; sharing best practices for implementing AI principles; and ensuring that inclusivity remains central to AI-related policies.
Advocacy
Malaysia’s Personal Data Protection Department is conducting a public consultation on automated decision making and profiling until May 14.
Philippines Privacy Regulators are collecting public comments on biometric data collection until May 30.
Saudi Arabia opened comment on the Global AI Hub law until May 14.
Pakistan has an open consultation on its draft National AI Policy ongoing.
The Asia AI Policy Monitor is the monthly newsletter for Digital Governance Asia, a non-profit organization with staff in Taipei and Seattle. If you are interested in contributing news, analysis, or participating in advocacy to promote Asia’s rights-promoting innovation in AI, please reach out to our secretariat staff at APAC GATES or Seth Hays at seth@apacgates.com.