China rejects US allegations of industrial-scale AI distillation

China's Ministry of Commerce has rejected allegations from United States agencies—including the NSA, CISA, and FBI—claiming that Chinese artificial intelligence firms are engaging in “industrial-scale” distillation to extract capabilities from American AI models.

Chinese officials characterized the accusations as unfounded and lacking legal basis, arguing that the U.S. is politicizing a standard industry practice. According to Beijing, model distillation is a neutral, widely accepted technical method used globally by major technology firms to improve learning efficiency. The Ministry stated that these claims represent an attempt by the United States to pursue technological dominance and monopolize computing power in the artificial intelligence sector.

China has expressed strong opposition to these developments, suggesting that the U.S. is applying double standards. Beijing warned that if the U.S. uses these allegations as a pretext to suppress Chinese AI enterprises, China will take necessary countermeasures.