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China rejected US AI theft claims.after American federal agencies accused several Chinese AI companies of using a technique called knowledge distillation to copy capabilities from advanced US AI models.
Knowledge distillation is a method in machine learning in which a smaller or less powerful AI model learns from a larger and more advanced model. Instead of developing every capability from scratch, the smaller model learns from the larger one. This is a common and useful method in AI research.
However, US agencies have accused some Chinese AI companies of taking too much information or capability from advanced US AI models, describing the practice as a form of AI theft.
China rejected US AI theft claims
China’s Commerce Ministry said knowledge distillation is a common method used across the artificial intelligence industry. It also accused the United States of applying double standards when discussing how AI companies build and improve their models.
The dispute is causing more tension between the US and China over technology. Beijing rejected the allegations, while Washington defended its cybersecurity warning.
The US claims were laid out in a joint advisory issued on September 8, 2026, by the National Security Agency, the Federal Bureau of Investigation and the Cybersecurity and Infrastructure Security Agency. The agencies said Chinese AI companies had carried out aggressive attacks aimed at disrupting advanced American AI systems.
A day later, on September 9, China rejected US AI theft claims. The Chinese government said the claims were false and accused the US of trying to limit competition in the global AI industry.
The ministry said China would fight back if the United States used the claims to target Chinese AI companies. China’s Foreign Ministry also called on Washington to stop making false accusations and urged the two countries to work together on artificial intelligence development.
The US agencies said these companies had extracted billions of tokens from US AI models through millions of requests since late 2024.
US President Donald Trump and Chinese President Xi Jinping are set to hold talks in September, with artificial intelligence expected to be among the issues attracting attention.
Reuters reported that Xi may travel with a large group of Chinese business executives, although it is still unclear who will be included in the delegation. Previous US-China meetings have included prominent technology and business leaders. The growing fight over AI could become another issue for the two governments to discuss.
China rejected US AI theft claims as the two countries continue to compete over artificial intelligence technology and national security.
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