China has issued a strongly worded statement rejecting accusations by the United States that Chinese tech companies are stealing American AI on an industrial scale. The rebuff was issued on Wednesday.
Earlier on Tuesday, a trio of U.S. intelligence agencies – the FBI, NSA (National Security Agency), and CISA – accused AI companies in China of exploiting U.S.-developed AI models in order to develop their own models.
The advisory that was issued jointly by the three U.S. intelligence agencies singled out firms like Moonshot AI, Alibaba and DeepSeek as guilty of conducting large-scale distillation campaigns from as far back as 2024 to piggyback on U.S. technology in order to develop their own. The agencies added that these efforts were undertaken with the knowledge of Beijing about what was taking place.
The intelligence agencies fell short of saying that Beijing actively encouraged those distillation efforts.
On Wednesday, the Commerce Ministry of China responded to the accusations leveled against technology companies in China. In a statement, the ministry said America wanted to monopolize the AI industry and the allegations made were driven by that motive.
The ministry added that China would implement “resolute countermeasures” if America attempted to suppress Chinese artificial intelligence firms.
While distillation is a common practice in the tech world, the U.S. intelligence agencies assert that the scale on which firms in China are leaning on this practice can only be described as theft since the companies doing it are almost entirely depending on distillation rather than turning to it as a supplement to their other R&D activities.
The Foreign Ministry of China also commented on these accusations and urged the United States to refrain from levying baseless accusations against China.
Mao Ning, the foreign affairs ministry spokesperson, called for all parties to work collaboratively so that AI could be developed in inclusive ways that were open and of universal benefit to humanity.
The advisory issued by the U.S. comes at a time when the U.S. is slated to host Xi Jinping, the Chinese president. The visit will involve a summit in which the two leaders hold discussions on various topics, such as AI. Reports indicate that Xi is likely to be accompanied during this visit by numerous executives just as Trump went to Beijing with several executives like Jensen Huang and Elon Musk in May this year.
The growing tensions between Washington and Beijing in the buildup to the Trump-Xi summit towards the end of this month are likely to be of concern to tech titans like Nvidia Corp. (NASDAQ: NVDA) as such accusations and counteraccusations could make it harder for the two leaders to reach an agreement on how the AI industry moves forward.
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