China fights back in AI spat with claim US AI companies distil Chinese models

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AI AND ML

Beijing happy to ‘take all necessary measures’ if sanctioned

China’s government has vowed to “take all necessary measures” if the US government imposes new sanctions on AI companies.

That threat came on Monday at a media Q&A staged by China’s Ministry of Commerce, during which local reporters asked about allegations that Chinese AI companies have distilled leading American AI models. The source of those allegations was Donald Trump’s Assistant for Science and Technology, Michael Kratsios, whose stance was backed by US Treasury Secretary Scott Bessent.

China always denies that its military, intelligence services, and private industry steal any information or technology, and characterizes allegations of theft as propaganda intended to discredit the nation.

The Ministry’s responseto the Trump administration’s allegations re-uses those arguments. It then suggests that Chinese AI companies didn’t have enough time to distill the latest frontier models, because the US companies that developed...

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