China Rejects US Claims of Malicious AI Technology Extraction
China Dismisses US Allegations Against Chinese AI Firms, Calling the Claims Unfounded as Tensions Over Artificial Intelligence Competition Intensify. China has strongly rejected

China has strongly rejected allegations from the United States that Chinese artificial intelligence companies have been involved in large-scale efforts to extract capabilities from advanced American AI models. The accusations, made by US cybersecurity agencies, have intensified an already growing dispute between Washington and Beijing over AI technology, intellectual property and national security.
US officials have accused several Chinese AI companies, including DeepSeek, Moonshot AI and Alibaba, of using a technique known as AI distillation to reproduce or obtain capabilities from advanced models developed by American technology companies. Washington argues that the alleged activity could give Chinese firms access to sophisticated AI capabilities while reducing the cost and time required to develop competing systems.
Beijing has rejected the accusations, describing them as unfounded and criticizing the United States for portraying a widely used AI development technique as inherently malicious. Chinese officials have also accused Washington of attempting to restrict competition and maintain an advantage in the rapidly developing global AI industry.
The dispute comes as the US and China face increasing competition over advanced semiconductors, AI models, computing infrastructure and technological standards. Both countries are investing heavily in domestic AI capabilities, while US restrictions on advanced technology exports to China have encouraged Chinese companies to strengthen their own research and hardware ecosystems.
The latest disagreement could also complicate efforts to establish cooperation between the two countries on AI safety. Washington and Beijing are preparing discussions focused on emerging AI risks, including cybersecurity concerns and the behaviour of increasingly capable AI systems. Despite their differences, both sides face pressure to develop clearer rules and communication channels as competition in artificial intelligence continues to accelerate.



