China's Ministry of Commerce has responded to recent US government accusations that Chinese artificial intelligence firms are engaged in "industrial-scale" model distillation against American companies. In an official statement, the Ministry's spokesperson addressed the joint cybersecurity advisory issued on September 8th by the US National Security Agency, the Cybersecurity and Infrastructure Security Agency, and the Federal Bureau of Investigation.
Washington's announcement alleged that Chinese AI companies are undertaking large-scale distillation to capture frontier model capabilities from their US counterparts and suggested defensive measures for American businesses. The Chinese Commerce Ministry spokesperson declared that these accusations are entirely without factual basis or legal justification, asserting that the move represents an attempt to politicize and weaponize a standard technical and commercial practice.
The ministry characterized the US advisory as yet another example of technological hegemony and computational power monopolization designed to suppress competition. The spokesperson offered strong opposition to the claims, emphasizing that distillation is a common and neutral technical method used by model developers globally, including American enterprises, to enhance learning efficiency and improve the utilization of human knowledge.
Highlighting the positive aspects of the technology, the statement noted that distillation aids the global development of the AI sector, unlocks the potential of the technology, bridges developmental gaps, and benefits developing nations and society at large. The spokesperson explicitly accused the US of displaying blatant double standards, pointing out that China encourages open-source collaboration and its models are available to global firms, including those in the US.
The statement went further, revealing that while Washington repeatedly vilifies Chinese companies, reports from American model developers themselves indicate they heavily distill Chinese models. This, the ministry argued, reflects both Washington's anxiety and its inconsistent policies, effectively using the pretext of combating distillation to enforce an industrial monopoly.
The Chinese response criticized Washington for involving national security agencies in what should be normal commercial activity, thereby binding individual corporate interests to national security and interfering with business operations. It was also noted that some US AI companies abuse their competitive advantages by imposing broad geographic restrictions and other hegemonic clauses in user agreements, suggesting the US distillation allegations serve to endorse such practices.
The ministry accused the US of using state power to maintain a technological hegemony and monopolize computational resources. Since the beginning of the year, both the executive and legislative branches of the US government have repeatedly threatened sanctions against Chinese firms, aiming to stifle competition, secure data and computing monopolies, and ensure that only the US benefits from global AI resources, preventing other nations from partaking in shared technological innovations.
Acknowledging that the large model industry is at a critical juncture of rapid iteration and development, the spokesperson stressed that China and the US, as major powers, should address challenges and risks in AI responsibly. Following the agreement between the two countries' leaders to initiate intergovernmental AI dialogue, China expressed willingness to engage in constructive and professional discussions with the US based on principles of mutual benefit and win-win cooperation.
The ministry concluded with a firm warning: if Washington continues to suppress Chinese AI enterprises under the guise of combating distillation, Beijing will resolutely take countermeasures. An appeal was made for the US to work with China towards managing risks through dialogue and communication to promote an AI industry that benefits the entire world.