China’s state-run daily, People’s Daily, dismissed recent US accusations that Chinese firms engaged in unauthorized large-scale distillation of American AI models, warning of possible Chinese countermeasures amid rising geopolitical friction over AI technology.
- People’s Daily calls US claims factually baseless and politically motivated.
- Distillation described as a normal AI method widely practiced internationally.
- China warns of countermeasures if US continues restrictive AI measures.
What happened
The People’s Daily, official mouthpiece of China’s Communist Party, publicly rejected allegations from US agencies accusing Chinese AI companies of engaging in “aggressive and malicious” distillation of advanced American AI models at an industrial scale. These claims included naming Chinese firms such as DeepSeek and Alibaba.
In an editorial response, the paper argued that these allegations lack both factual and legal basis, categorizing the US actions as politicization of a common technical process known as distillation. The commentary emphasized that some American companies have themselves used distillation techniques on Chinese AI products, underscoring the practice’s widespread acceptance.
Why it matters
The US has intensified AI-related restrictions, extending beyond chip controls and computing hardware to limiting Chinese access to AI model outputs. This reflects underlying anxieties about losing technological leadership, with American officials suggesting that China’s AI ambitions could threaten US dominance.
China’s strong rebuttal signals a hardening stance in the ongoing technology competition, indicating Beijing’s readiness to retaliate should the US actions be perceived as attempts to suppress its AI development. This conflict shapes the strategic landscape of global AI governance and innovation competition.
What to watch next
With a high-profile meeting scheduled between Chinese President Xi Jinping and US President Donald Trump on September 24, AI is expected to feature prominently in their discussions. The outcomes could impact future policies on cross-border AI cooperation, technology controls, and trade relations.
Observers will also be monitoring how both nations address the governance of AI technology amid geopolitical rivalry — whether through continued escalation or dialogue aimed at joint risk management. The handling of distillation issues could set precedents for how AI intellectual property and access are managed globally.