Full Breakdown
China’s People’s Daily Rejects U.S. Allegations Over AI Model Distillation
By Drooid · · How we work
Core Event
In a commentary published on Wednesday, People’s Daily — the official newspaper of the Chinese Communist Party — dismissed U.S. accusations that Chinese artificial-intelligence firms were conducting “industrial-scale” distillation of frontier American models. The newspaper called the claims “without factual or legal basis,” argued that Washington was politicising a routine technical practice, and warned that Beijing would take “countermeasures” if the United States used the allegations to contain Chinese companies.
Background & Context
The U.S. has raised concerns that Chinese firms are using model-distillation—a method that leverages outputs from larger models to train smaller, cheaper systems—to reduce development costs and potentially acquire proprietary knowledge. Beijing has repeatedly rejected similar accusations of large-scale intellectual-property theft aimed at its AI sector. The People’s Daily piece appeared a week before a scheduled summit between President Xi Jinping and President Donald Trump on September 24, where AI policy is expected to be a key discussion point. Nvidia Corp. CEO Jensen Huang is reported to attend a state dinner with Trump during the visit.
Official Statements & Responses
People’s Daily asserted that the United States treats the same distillation technique as an “industry-standard practice” for American firms while labeling Chinese use as an “attack,” describing the disparity as “naked double standards.” It called for open, inclusive AI development and urged both sides to manage risks through dialogue. The White House did not immediately respond to a request for comment on the newspaper’s statements.
Potential Impact
The newspaper’s warning of “countermeasures” signals Beijing’s readiness to push back against any U.S. policy moves that might restrict Chinese AI companies. With the September 24 summit approaching, the dispute adds tension to broader U.S.–China technology talks and could shape the agenda for bilateral negotiations on AI safety and market access.