Putri Anggraini
The Chinese government has sharply pushed back against allegations from the United States claiming that its premier technology firms have engaged in the industrial-scale exploitation and theft of proprietary American artificial intelligence models. The dispute marks a significant escalation in tensions over global technological leadership.
The friction intensified following a joint advisory published by three major US federal intelligence and cybersecurity agencies: the Federal Bureau of Investigation, the National Security Agency, and the Cybersecurity and Infrastructure Security Agency. Together, the agencies accused prominent Chinese technology entities of systematically exploiting US-developed systems to build and advance their own domestic capabilities.
According to the joint US security bulletin, prominent Chinese companies—including DeepSeek, Alibaba, and Moonshot AI—have harvested and distilled billions of tokens from American-built models since at least late 2024. The advisory further claimed that these activities were carried out with the likely knowledge and awareness of the Chinese central government.
In the field of artificial intelligence, tokens represent the fundamental, minimal units of data and text that machine learning architectures process, read, and generate. The US agencies focused their accusations on the practice of model distillation, a technical methodology whereby developers train smaller, less sophisticated AI models using the outputs and parameters of larger, cutting-edge foundation systems.
American security officials asserted that the operations uncovered were not merely ordinary technical benchmarks. The joint advisory claimed that the sheer scale and technological sophistication of the campaigns show that distillation has served not as an auxiliary tool or supplement, but as the critical core of model development for these Chinese firms.
China’s Ministry of Commerce swiftly rejected the accusations on Wednesday, characterizing Washington’s assertions as an aggressive bid to establish and protect an American monopoly over the global AI sector. Ministry officials asserted that distillation remains an established, standard practice utilized across the entire international artificial intelligence landscape, including by prominent US-based corporations.
The Commerce Ministry warned that Beijing would not stand by if the US government uses the issue as a pretext to enact punitive actions against domestic firms. In a statement, the ministry stressed that if Washington takes steps to suppress Chinese AI enterprises under the guise of targeting model distillation, China will enact resolute countermeasures to defend its economic interests.
Addressing the matter during a press briefing, Chinese Foreign Ministry spokesperson Mao Ning urged the United States to abandon its rhetoric and halt what she termed unfounded accusations and smears against China's domestic technology sector. She maintained that Chinese technological development is driven by internal innovation rather than foreign exploitation.
Mao emphasized that China’s rapid progress in artificial intelligence is the direct outcome of high-level technological self-reliance, domestic ingenuity, and intrinsic industrial strength. She called on the international community to foster an environment of open, inclusive, and mutually beneficial cooperation aimed at serving the common good rather than pursuing unilateral containment.
The public clash arrives at a diplomatically sensitive juncture, surfacing only weeks before Chinese President Xi Jinping is scheduled to travel to the United States for an extensive summit hosted by US President Donald Trump. Artificial intelligence and bilateral technology trade are expected to feature prominently on the agenda during their discussions.
Reports suggest that President Xi could be accompanied on his US journey by a substantial delegation of top Chinese corporate leaders and executives. While an official roster has not been released, previous high-profile bilateral meetings suggest that prominent figures from the technology and artificial intelligence sectors could participate in the diplomatic mission.
Precedents for such high-level corporate involvement exist on both sides of the Pacific. When President Xi traveled to the US in 2015, the delegation included Alibaba founder Jack Ma. Similarly, during President Trump's official visit to Beijing in May, the American president was accompanied by more than a dozen leading US executives, including Tesla Chief Executive Elon Musk.
The Trump administration has maintained a rigorous, hardline approach toward the expansion of Chinese technological capabilities, viewing the rapid advancement of rival AI systems as a vital national security and economic concern. Washington has sought to curtail the competitive momentum of foreign models that challenge domestic industry leaders.
Underlining Washington's stance, US Treasury Secretary Scott Bessent remarked during an appearance in Dallas that China’s reliance on foreign training data would permanently prevent it from overtaking the United States. Bessent told the audience that because Chinese developers rely on distilling American models, they will never be able to surpass US technological supremacy.
Despite Washington's skepticism, China continues to pour vast financial resources into expanding its technological footprint. Beijing has committed nearly $300 billion toward robotics, automation, and advanced AI systems, identifying the sector as a primary engine for its long-term economic expansion and future industrial resilience.
The Chinese technology enterprises specifically cited in the US intelligence advisory—DeepSeek, Alibaba, and Moonshot AI—have not immediately issued formal public comments regarding the specific allegations outlined in the federal report.
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