US warned over AI sanctions threat

China called on the United States on Monday to stop politicizing technology and trade issues, after some US officials reportedly said they were considering investigating and sanctioning Chinese artificial intelligence companies over alleged model "distillation", according to the Ministry of Commerce.

Responding to the reported remarks, a ministry spokesperson said in a statement that China firmly opposes the US government using unfounded accusations to stigmatize and sanction Chinese companies, warning that China would take all necessary measures to safeguard its legitimate rights and interests against any actions substantially undermining its interests.

The spokesperson said that the US side has ignored the fact that Chinese AI models were released around the same time as leading US models, and that some Chinese models have already achieved world-leading capabilities in certain fields.

Calling the US approach a typical example of "AI hegemony", the spokesperson said the accusations lack factual and legal bases and reflect a double standard. Innovation is not the exclusive privilege of any one party, the spokesperson added, noting that Chinese AI companies have long invested in fundamental research while promoting both technological self-reliance and international cooperation.

According to information released by the ministry, many US AI companies have used Chinese models for distillation during research and training. Nearly 200 US startups have urged the US government not to cut off access to Chinese open-source AI models, arguing that such restrictions would weaken the competitiveness of US companies.

Some US multinational companies have also described model distillation as a widely used industry practice and supported allowing US companies to use Chinese open-source AI models.

The spokesperson urged the US to heed the objective and rational voices of businesses in both countries, stop smearing and threatening Chinese companies, and strengthen dialogue and communication on AI.

In a separate statement released on Monday by the ministry, China also called on the US to revoke all relevant unilateral tariff measures and address bilateral trade concerns through dialogue and consultation, after Washington imposed an additional tariff of 12.5 percent on Chinese goods under Section 301 of the Trade Act of 1974.

"We will continue to closely monitor and fully assess any further steps by the US and reserve the right to take all necessary measures," said a ministry spokesperson.

China is willing to continue dialogue and consultations with the US on the basis of mutual respect, equality and mutual benefit to address concerns on both sides, the spokesperson said.

Beijing also hopes that Washington will work in the same direction, follow through on the consensus reached in bilateral economic and trade consultations, reduce outstanding issues and expand areas of cooperation, thereby making greater contributions to building a constructive China-US relationship of strategic stability, the spokesperson added.