Technology

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

China Fires Back in AI Spat, Threatens ‘Necessary Measures’ Against US Companies

Beijing’s Ministry of Commerce is accusing US AI companies of “distilling” Chinese models, a move it claims is a breach of intellectual property rights.

The statement, made during a media Q&A on Monday, comes as tensions between the two nations escalate over the US considering new sanctions on Chinese tech firms.

China’s government has already vowed to take all necessary measures if the US imposes these sanctions. The country has been at the forefront of AI research and development, and the Ministry of Commerce is now warning that its patience is wearing thin.

“This so-called ‘distilling’ by US companies of Chinese AI models is a serious breach of intellectual property rights, and we will not stand idly by,” said a ministry spokesperson.

The accusation centers around the practice of reverse-engineering, where US companies allegedly use Chinese AI models as a starting point to develop their own versions. Beijing is taking this as a clear infringement on its intellectual property rights.

US companies like **Meta** and **Google** have faced criticism for their involvement in AI research and development in China, with some accusing them of ignoring human rights concerns.

What this means: If these sanctions go through, US companies operating in China may face severe consequences, including potential shutdowns, asset freezes, and even expulsion from the market.

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