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Home Research Technology

US Sanction Threats on AI Firms Draw Rebuke From China

ResTV by ResTV
July 29, 2026
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US Sanction Threats on AI Firms Draw Rebuke From China
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China on Monday urged the United States to stop threatening Chinese artificial intelligence (AI) companies with sanctions, a move it described as unjustified and politically motivated. A spokesperson for the Chinese Ministry of Commerce, He Yongqian said the reported actions lacked factual and legal basis, and also reflected what China called “AI hegemony.” 

He was responding to reports that senior US officials were considering investigations into Chinese AI firms over allegations that they had used “distillation” techniques involving advanced US AI models and had infringed U.S. intellectual property rights. 

According to the spokesperson, China opposes the politicisation of science and technology, as well as the use of economic and trade issues to suppress Chinese companies. 

He said the US had ignored the fact that AI models developed by Chinese companies were released around the same period as similar US models while some had already reached leading global standards.

“Innovation is not the exclusive preserve of any country,” the spokesperson said. He said that Chinese AI companies had continued to invest in basic research while pursuing technological self-reliance and promoting openness and international cooperation. 

According to the spokesperson, Chinese firms had recorded significant progress in several areas, including front-end coding capabilities. He also claimed that many U.S. AI companies had relied on Chinese AI models for distillation during research, development and model training. 

He added that many US businesses had opposed any move to restrict access to Chinese AI models. He said nearly 200 US startups had urged the government not to block Chinese open-source AI models, arguing that such restrictions would undermine the competitiveness of American companies. 

The ministry spokesperson noted that several major US multinational companies had maintained that model distillation was a common industry practice and that U.S. firms should be free to use Chinese open-source AI models. 

He urged Washington to heed the views of businesses in both countries, abandon what he described as a hegemonic approach, and stop threatening Chinese AI companies with sanctions. He warned that China would take all necessary measures to safeguard its legitimate rights and interests against any action that materially harmed its interests. 

The spokesperson also urged the US to implement the consensus reached by the leaders of both countries and strengthen dialogue on AI. He also called for closer cooperation with China to promote the responsible development and governance of AI for the benefit of the international community.

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