China's Cyberspace Administration (CAC) published draft rules on September 18 that would ban platforms from offering "virtual intimacy services," "virtual relatives," and "virtual companions" to any user under 18 — the most sweeping government action yet against AI companion products aimed at minors.
The 25-article draft, titled "Ensuring minors' safe and healthy use of the internet," is open for public comment until October 17. If enacted, it would force every AI companion platform serving Chinese users to implement age verification and block under-18 access to any form of simulated romantic or familial relationship.
What the Draft Prohibits
The draft explicitly bars minors from accessing "online social networking services with strangers, virtual intimate relationship services, and online services that induce addiction in minors or are detrimental to their physical and mental health," according to the official text published by China's State Council Information Office.
Platforms running online games, social media, and AI services that could affect users under 16 must activate a dedicated "minors' mode" with usage time limits and parental controls. The rules also require safety assessments and anti-addiction measures for any AI service that creates ongoing, human-like interaction.
This goes further than China's first AI companion rules that took effect July 15, which required usage reminders and emotional intervention features but did not outright ban minors from companion services. The new draft closes that gap entirely.
Market Impact on NSFW AI
The proposed ban directly targets the NSFW AI companion market in China, where platforms like Doubao (ByteDance), Qwen (Alibaba), and various third-party character chatbots have offered romantic and intimate roleplay features. Many of these platforms already restricted minors after the July rules took effect, but the new draft would make those restrictions mandatory and legally enforceable.
China's AI companion market has grown rapidly alongside global demand. NSFW and romantic AI companion apps worldwide reached 165.3 million downloads and $427.3 million in consumer spending since late 2022, with $162.8 million of that total coming in the first half of 2026 alone, according to market data cited in earlier reporting.
The CAC's draft does not distinguish between domestic and foreign platforms — any service accessible to users in China would need to comply.
Broader Regulatory Context
The proposal arrives as multiple jurisdictions tighten rules around AI companions and minors. The EU's proposed Kids Act, published earlier this week, would force AI companion features off by default for minors across Europe and ban "emotional dependency" design patterns. California's SB 243, already enforceable since January 2026, requires companion chatbot operators to disclose that interactions are AI-generated and to implement self-harm detection.
China's approach is notably more direct: rather than requiring disclosures or design changes, it simply prohibits the product category for an entire age group.
What Happens Next
The public consultation runs through October 17, 2026. After that, the CAC will review feedback and issue final rules. Given the Chinese government's track record on digital regulation — the July 15 companion rules were finalized quickly after their draft — platforms should expect enforcement within months of the comment period closing.
For NSFW AI developers and companion platforms with Chinese users, the message is clear: age verification is no longer optional, and serving minors with any form of intimate AI interaction will become illegal.