China Rejects U.S. AI Theft Allegations as Smear Warns Against Sanctions

By Blessing Nweke

China has strongly rejected accusations by the United States that Chinese artificial intelligence companies stole technology from leading American AI developers, calling the claims a politically motivated smear and warning Washington against imposing sanctions.

The response came after senior U.S. officials alleged that Chinese firms had engaged in unauthorized “distillation,” a technique in which a smaller AI model learns from the outputs of a more advanced system. U.S. Treasury Secretary Scott Bessent said the Trump administration was examining whether Chinese AI companies had improperly used American technology and suggested sanctions could be considered if evidence of intellectual property theft is confirmed.

Speaking at a regular news briefing, Chinese Foreign Ministry spokesperson Guo Jiakun dismissed the accusations as “entirely baseless” and described them as an attempt to undermine China’s growing AI industry. He said Beijing firmly opposes what it called Washington’s campaign of “smear and defamation” against Chinese technological achievements.

Guo also criticized U.S. export restrictions on advanced semiconductors and AI technology, arguing that Washington has used sanctions and other measures to suppress Chinese innovation while accusing China of unfair practices. He urged the United States to stop what Beijing described as “technological coercion” and instead foster fair competition and cooperation in the AI sector.

The dispute highlights growing tensions between the world’s two largest economies over artificial intelligence, a field viewed as strategically important for economic growth and national security. U.S. officials have recently intensified scrutiny of Chinese AI developers amid concerns that they may be benefiting from American innovations without authorization.

The latest exchange adds to an increasingly contentious technology rivalry, with both governments trading accusations over intellectual property, export controls and access to advanced computing technology.