[🇨🇳] China vs USA

[Saif]

Beijing says US firms train AI models on Chinese examples

Beijing accused US artificial intelligence companies of using Chinese examples to train their models, after US threatened sanctions Chinese firms over 'technology theft'.

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Beijing says US firms train AI models on Chinese examples

AFP
Beijing
Published: 27 Jul 2026, 19: 10

Visitors watch two humanoid robots kickbox at the Unitree booth during the World Artificial Intelligence Conference (WAIC) in Shanghai, China, on 18 July 2026 REUTERS

Beijing accused US artificial intelligence companies on Monday of using Chinese examples to train their models, days after Washington threatened sanctions on Chinese firms for allegedly stealing American technology.

"It is understood that many American artificial intelligence enterprises have distilled Chinese models during their research, development and training processes," the Chinese commerce ministry said in a statement.

Distillation is a process in which an AI model is trained to mimic the output of a larger, more capable one.

The method is widely used across the industry, but US officials say Chinese firms have deployed it at scale to illicitly copy proprietary American systems.

The Chinese ministry said the US accusations "lack factual basis and legal grounds, adopt double standards in practice, and constitute typical acts of artificial intelligence hegemonism".

"China will take all necessary measures to firmly safeguard its legitimate and lawful rights and interests," it added.

Last week, a senior White House official accused Chinese startup Moonshot AI of covertly copying Anthropic's most advanced model to build its Kimi K3.

The latest Moonshot model stunned the US tech industry upon its release, setting off a fresh discussion over the AI rivalry with China.

Treasury Secretary Scott Bessent last week threatened sanctions against China, amid reports the US is also weighing a ban or curbs on foreign-made open source models that are often built through distillation.​

 

[Saif]

US to tell dozens of partner countries to pick sides in AI race with China

The US is preparing to tell dozens of countries they must pick sides in the artificial intelligence race with China, warning they will be excluded from a U.S.-led AI coalition if they also sign up for Beijing's competing framework, according to a U.S. official and an internal draft reviewed by...

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US to tell dozens of partner countries to pick sides in AI race with China

Reuters
Washington

U.S. and Chinese flags are seen in this illustration created on 10 April 2025. Reuters

The US is preparing to tell dozens of countries they must pick sides in the artificial intelligence race with China, warning they will be excluded from a U.S.-led AI coalition if they also sign up for Beijing's competing framework, according to a U.S. official and an internal draft reviewed by Reuters.

Washington last year launched the Pax Silica initiative aimed at securing supply chains for AI models, semiconductors and critical minerals, amid a fierce technology rivalry with Beijing.

About two dozen countries have joined, including Kazakhstan, a key potential source of critical minerals that has also joined China's coalition, as well as close U.S. allies such as Japan, Australia and South Korea.

The draft letter, prepared by the State Department, is addressed to the 35 signatories of a U.S. "AI Opportunity Statement" signed in June, which includes members of the non-binding Pax Silica framework and other countries that have expressed a desire to align cooperation on AI with Washington.

By pressing countries to choose sides the U.S. hopes to starve China of resources in a race to make the most sophisticated AI, which could be used for military or economic dominance.

In July, Chinese President Xi Jinping launched a rival "World Artificial Intelligence Cooperation Organization", promoting his country's open-weight technology as a challenge to U.S. influence over the fast-moving sector.

Kazakhstan is the only country so far known to have joined both initiatives, setting off alarm bells in Washington.

"To be part of everything is to be part of nothing. Signature of the Pax Silica Declaration is not merely a membership subscription, but a commitment," the letter says, urging countries to "choose deliberately" on AI.

"It cannot be held alongside membership in duplicative initiatives whose expectations conflict with our own," the letter said, without specifically mentioning China.

Reuters could not determine when the U.S. intends to send the letter or whether it might be amended before sending. The draft was undated.

The State Department told Reuters it would not comment on "purportedly leaked internal documents."

China’s embassy in Washington said the country opposes politicizing trade and technology issues. “Such actions will only stifle global AI advances and serve no one’s interests,” an embassy spokesperson said.

The Kazakh embassy in Washington did not respond to a request for comment.

'Can't have it both ways'

The Pax Silica agreement aims to push U.S. allies and partners toward joint projects and export controls, and ultimately reduce reliance on adversaries for critical minerals, AI models and the semiconductor chips that power them.

The race between the U.S. and China for technological leadership has reached a pivotal moment, as Chinese open-weight AI models have made rapid gains against proprietary systems from U.S. companies such as OpenAI and Anthropic.

The exponential growth of the technology's capabilities, including the ability to hack autonomously, has forced a global reckoning over its power.

Beijing is weighing restrictions on overseas access to some of China's leading AI models, highlighting the growing tension with its stringent national security agenda.

The U.S. touted Kazakhstan in June as the first country in Central Asia to join Pax Silica, bringing significant reserves of critical minerals that fuel advanced technologies.

China has used its current near-monopolies over critical minerals as a retaliatory weapon in a tariff war launched last year by U.S. President Donald Trump, who has ramped up U.S. efforts to source the minerals domestically and from allies.

Members of Pax Silica have access to shared investment opportunities in AI-related projects while those who sign the AI Opportunity Statement have symbolically agreed on a "common purpose" and "shared vision" with the U.S., according to the statement posted on the State Department's website.

U.S. officials drafted the letter to make clear that "you can't have it both ways," the U.S. official told Reuters, speaking on condition of anonymity given ongoing internal discussions on the issue.

"It's difficult to see how a country can credibly position themselves as trusted partners in one technology ecosystem while simultaneously signing up for an initiative designed by China to advance a competing vision for AI," the official said.​