US Plans Investigation and Sanctions on Chinese AI Firms, Commerce Ministry Responds: Washington Groundlessly Labels Chinese Companies with "Distillation" and "IP Theft" Accusations

Deep News
07/27

On July 27, the Chinese Ministry of Commerce published a statement on its website titled "Ministry of Commerce Spokesperson Answers Reporter's Questions on US Announcement of Investigation and Sanctions Against Chinese AI Companies." The statement reads: Question: Recently, several senior US officials have publicly stated they will investigate Chinese AI companies for allegedly "distilling" US frontier models, and may impose sanctions on Chinese companies under the pretext of "stealing US intellectual property." What is China's comment on this?

Answer: We have taken note of the relevant situation. China has always opposed the US politicizing and instrumentalizing technological and trade issues, stigmatizing Chinese companies with unsubstantiated accusations, and imposing sanctions. The US ignores the fact that the release times of relevant Chinese AI companies' models are very close to those of US frontier models, and that some Chinese models are already at a leading level in certain capabilities. Instead, Washington has slapped labels on Chinese companies, claiming they rely on "distillation" and "stealing US intellectual property," and has threatened to suppress and sanction them. These actions lack factual basis, have no legal foundation, employ double standards in practice, and represent a typical act of AI hegemony.

Innovation is not the exclusive domain of any party. Chinese AI companies have long been deeply engaged in basic research, adhering to a balance between self-reliance in technological development and openness to international cooperation. They uphold the principles of extensive consultation, joint contribution, and shared benefits, driving the rapid advancement of AI technology and achieving impressive results in an increasing number of fields, such as front-end code capability. It is understood that many US AI companies have distilled Chinese models during their research, development, and training processes. Notably, numerous companies in the US industry have publicly opposed the threat of sanctions against Chinese AI companies. Nearly 200 US startups have urged the US government not to cut off access to Chinese open-source models, arguing that doing so would weaken the competitiveness of US companies. Some large US multinational corporations have stated that model distillation is a widely used industry technique, and US companies should be allowed to use Chinese open-source AI models.

China urges the US to listen to the objective and rational voices of industries in both China and the US, to correct its hegemonic mindset, and to stop slandering Chinese companies and threatening sanctions. For any actions that substantially harm China's interests, China will take all necessary measures to firmly safeguard its own legitimate rights and interests. China hopes the US will effectively implement the consensus reached by the two heads of state, work with China in the same direction, strengthen dialogue and communication on AI, jointly promote AI for good, and benefit the world by advancing and improving AI governance.

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