China warns of retaliation against US AI distillation allegations

China has rejected US allegations of “aggressive, malicious” AI distillation as groundless, warning that it would retaliate if Washington used the claims as a pretext to contain the country’s rapidly advancing artificial intelligence sector, reports the South China Morning Post.

China’s Ministry of Commerce said that US allegations of Chinese AI companies copying American models “on an industrial scale” lacked factual and legal grounds, accusing Washington of using the allegations to assert technological dominance, monopolise computing power and suppress competition.

The response came after the US government on Tuesday accused six Chinese companies–including DeepSeek–of conducting “aggressive, malicious and targeted” distillation of advanced American models on an industrial scale, allegedly with the Chinese government’s awareness.