Ministry of Commerce Criticizes US Hype of AI "Distillation", States US Companies Also Extensively Use Chinese Models

On July 27th, according to news reports, China's Ministry of Commerce responded to the US's proposed investigation and sanctions against Chinese artificial intelligence companies on the grounds of "distilling US frontier models" and "intellectual property theft." The Ministry accused the US of politicizing technology and trade issues, employing double standards, and engaging in so-called "AI hegemony." The Ministry stated that Chinese AI companies have long pursued independent research and development, with some models already achieving leading performance. Furthermore, a significant number of US AI companies distill Chinese models during their research and development and training processes. Nearly 200 US startups and some multinational corporations have publicly opposed restricting access to Chinese open-source models, considering model distillation a common industry technique. China urges the US to cease its smear campaigns and suppression, stating that if the US substantively harms China's interests, necessary measures will be taken to safeguard its legitimate rights and interests.