China fights back in AI spat with claim US AI companies distil Chinese models

China’s government has vowed to “take all necessary measures” if the US government imposes new sanctions on AI companies. That threat came on Monday at a media Q&A staged by China’s Ministry of Commerce, during which local reporters asked about allegations that Chinese AI companies have distilled leading American AI models. The source of those allegations was Donald Trump’s Assistant for Science and Technology, Michael Kratsios, whose stance was backed by US Treasury Secretary Scott Bessent.