China has issued a response to allegations made by the United States that leading Chinese artificial intelligence companies have engaged in large-scale theft of American AI models. This response was made on Wednesday following accusations from three US federal agencies: the Federal Bureau of Investigation (FBI), the National Security Agency (NSA), and the Cybersecurity and Infrastructure Security Agency (CISA). These agencies claimed that Chinese AI companies have exploited American AI models to enhance their own systems.
The joint advisory released on Tuesday stated that companies such as DeepSeek, Alibaba, and Moonshot AI had distilled 'billions of tokens' from US models since at least late 2024, likely with the awareness of the Chinese government. Tokens are the smallest units of text that AI models read or generate.
In response, China’s Commerce Ministry dismissed the allegations, accusing the US of attempting to monopolize the AI industry. The ministry stated, 'If the U.S. suppresses Chinese AI companies under the pretext of targeting distillation, China will take resolute countermeasures.' Distillation is a process in which less advanced AI models are trained using more advanced ones, a practice the ministry noted is common in the AI industry, including among US firms. However, American companies argue that the scale at which Chinese companies are engaging in this practice constitutes theft.
The US advisory claimed that the scale and sophistication of these operations indicate that distillation is not merely supplementary to these companies' AI development but is central to it. The Associated Press reported that China’s Ministry of Foreign Affairs urged the US to refrain from making unfounded accusations against China. Ministry spokesperson Mao Ning stated, 'China’s AI development is the result of high-level technological self-reliance and strength,' and called for cooperation to promote AI development that is open and beneficial to all.
This advisory comes ahead of an upcoming visit by Chinese President Xi Jinping to the US, where he is expected to meet with President Donald Trump to discuss various topics, including AI. Reports suggest that Xi may be accompanied by a significant number of Chinese executives, although it is unclear who will join the delegation. Past meetings have included notable figures such as Alibaba founder Jack Ma.
The US government, under Trump, has adopted a hardline stance against the advancement of Chinese AI models. China is investing heavily in artificial intelligence and robotics, with nearly $300 billion allocated to what the government views as a critical future economic driver. During a speech in Dallas, US Treasury Secretary Scott Bessent stated that China can 'never get ahead' of the US in AI, asserting, 'The Chinese distill our models and they can never get ahead of us.'
The Chinese companies mentioned in the US advisory did not immediately respond to requests for comment.