Beijing dismisses Washington's AI copying accusations, threatens countermeasures
China's commerce ministry called US allegations of industrial-scale AI model distillation unfounded and legally baseless. It described the technique as a neutral practice used globally, including by American firms. The ministry warned that China would take resolute action if the US uses these claims to suppress Chinese AI companies.
The dispute centers on model distillation, a process where smaller systems learn from larger ones to cut development costs. Washington's Tuesday accusation named six firms, including DeepSeek and Alibaba, alleging state-backed, large-scale copying. Beijing's commerce ministry countered on Wednesday, framing the technique as a standard industry practice used by American tech giants as well.
The ministry further argued that the US is leveraging national security agencies to interfere in routine business operations, aiming to secure its own monopoly over computing resources. It explicitly warned that any American attempt to stifle Chinese AI growth under this pretext would trigger firm retaliatory actions from Beijing.
This escalating dispute could affect global AI supply chains and cross-border technology investments. Chinese AI firms may face heightened export controls or restricted access to advanced US chips, while American companies could lose access to the vast Chinese market. For end-users, the standoff may slow the pace of AI innovation and raise costs for deploying advanced models. Businesses relying on AI tools could see increased regulatory uncertainty, potentially fragmenting the global tech ecosystem into competing spheres of influence.