The commerce ministry says distillation is ‘neutral’ and widely used by companies around the world, including American firms
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.
China’s Ministry of Commerce said on Wednesday 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 and Alibaba Group Holding – of conducting “aggressive, malicious and targeted” distillation of advanced American models on an industrial scale, allegedly with the Chinese government’s awareness.
Model distillation is a technique in which a smaller AI model is trained on responses generated by a more powerful system, reducing the computing power, time and expense needed to develop a competitive product.
The commerce ministry described distillation as a neutral and widely used industry practice employed by companies around the world, including American firms. It accused Washington of using national security agencies to interfere in normal commercial activity and protect US dominance in computing power and data.
“If the US takes action to contain or suppress Chinese AI companies in the name of combating distillation, China will certainly take resolute measures in response,” the ministry said.