China has launched a government-backed official identification system for AI-generated “digital humans”—hyper-realistic virtual avatars that dominate Chinese livestreaming, e-commerce, and media. As reported by ABC News (Australia), Beijing presents the mandatory registration as a necessary measure to curb deceptive advertising and protect intellectual property, while free expression advocates warn it extends state surveillance over digital speech.

1. The Booming ‘Digital Human’ Economy

China’s virtual avatar sector has expanded at an extraordinary pace, driven by demand for round-the-clock digital hosts and virtual influencers:

• Massive Industry Footprint: Over 1.3 million companies in China are currently linked to the digital human ecosystem.
• 24/7 Commerce & Service: E-commerce merchants routinely deploy AI avatars for continuous live stream shopping and customer support. They also star in online micro-dramas and assist in public sector information hubs.
• State & Political Adoption: Chinese government bodies use digital officers to handle citizen inquiries, and state media entities have deployed AI anchors—such as Communist Party podcasts during the annual “Two Sessions” legislative meetings.
• Policy Alignment: The technology aligns with President Xi Jinping’s strategy promoting “new quality productive forces” to advance domestic AI capabilities.

2. Why Beijing is Regulating Virtual Personas

Chinese state media and regulatory bodies point to several consumer protection and legal issues driving the ID trial:

• Online Scams & Targeted Fraud: Fraudulent operators have utilized AI avatars to market unapproved medicines and health supplements to vulnerable audiences, particularly senior citizens unable to distinguish AI from real people.
• Misleading Product Claims: Controversy arose after virtual influencers pitched items like contact lenses and boasted about their comfort, provoking public backlash since AI avatars lack physical senses.
• Intellectual Property Rights: Official digital IDs establish clear legal ownership over created likenesses and virtual idols.

3. Oversight and Freedom of Speech Concerns

While authorities emphasize market order, cybersecurity and policy experts highlight significant free expression implications:

• Eliminating Digital Anonymity: Virtual avatars previously provided content creators a buffer of anonymity when touching on sensitive or controversial societal topics.
• Direct Real-Name Accountability: Linking every digital human directly to a registered person or corporate entity allows authorities to trace all generated content back to the responsible party.
• Chilling Effect: Industry analysts predict this forced attribution will create a strong chilling effect, leading creators to tightly censor what their AI avatars are programmed to say in public.

Source Video

• Title: China trials identity card for AI-generated ‘digital humans’ | Asia News Week | ABC NEWS
• Publisher: ABC News (Australia)