China rejects U.S. allegations against Chinese AI firms over model distillation

(ECNS) -- China on Wednesday voiced firm opposition to recent U.S. claims that Chinese artificial intelligence (AI) companies are engaged in so-called "industrial-scale" efforts to distill capabilities from U.S. AI models, calling the allegations groundless and lacking a legal basis, a spokesperson for the Ministry of Commerce (MOC) said at a press conference.

The U.S. move politicizes distillation, which is a normal technical and commercial practice in the AI industry, the spokesperson said, adding that the U.S. claims are further evidence of its pursuit of technological hegemony and a monopoly over computing power in the AI sector, as well as its efforts to suppress competition.

Distillation is a common practice through which AI models learn from one another and is essentially a neutral technical method used by model developers worldwide, including U.S. companies, the spokesperson noted. It can improve learning efficiency, enable more effective use of human knowledge and play an important role in the development of AI industries around the world.

China's open-source models are available to companies worldwide, including those in the United States. Some U.S. companies have disclosed that they have distilled a large number of Chinese models, the spokesperson said.

However, the spokesperson said the U.S. side has repeatedly and unilaterally accused Chinese companies of engaging in "industrial-scale" distillation while portraying a common industry practice as an aggressive act. This reflects U.S. anxiety and double standards, the spokesperson added.

The U.S. has repeatedly threatened sanctions against Chinese companies over their distillation practices this year, according to the spokesperson, who said such measures are intended to maintain U.S. dominance in computing power and data and prevent other countries from sharing in the benefits of AI innovation.

China and the U.S. should address the challenges and risks associated with AI in a proactive and responsible manner. The two heads of state have agreed to hold an intergovernmental dialogue on AI. China is willing to engage in constructive and professional discussions with the United States based on the principles of equality, mutual benefit and win-win cooperation, the spokesperson said.

If the U.S. takes action against Chinese AI companies under the pretext of targeting distillation, China will take resolute countermeasures, the spokesperson added.