China warns US against sanctions on Chinese AI companies over model distillation
( July 28, 2026, 02:24 GMT | Official Statement) -- MLex Summary: China’s Commerce Ministry urged the US to stop threatening investigations and sanctions against Chinese artificial intelligence companies over their alleged use of model distillation and theft of US intellectual property, according to a statement released Monday. The ministry said the accusations lacked factual and legal grounds, reflected double standards and amounted to “AI hegemony.” It said model distillation is widely used across the industry, including by US companies using Chinese models, and cited opposition from US businesses that warned restrictions on Chinese open-source models could weaken their competitiveness. China said it would take all necessary measures against actions that materially harm its interests, while calling for stronger bilateral dialogue and cooperation on AI governance. Statement follows (in Chinese). ...
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