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China warns U.S. to stop sanction threats against AI companies

Freedom Online by Freedom Online
July 27, 2026
in Breaking News
0

China, on Monday, urged the United States (U.S.) to stop smearing Chinese artificial intelligence (AI) companies and threatening them with sanctions, describing the move as unjustified and politically motivated.

He Yongqian, a spokesperson for the Ministry of Commerce, said the reported actions lacked factual and legal basis, and at the same time reflected what China called “AI hegemony.”

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

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

He said the U.S. had ignored the fact that AI models developed by Chinese companies were released around the same period as similar U.S. 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.

Yongqian said many U.S. businesses had opposed any move to restrict access to Chinese AI models.

He said nearly 200 U.S. start-ups had urged the government not to block Chinese open-source AI models, arguing that such restrictions would undermine the competitiveness of American companies.

He added that several major U.S. 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.

The spokesperson 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 urged the U.S. 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.

Tags: China warns U.S. to stop sanction threats against AI companies
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© 2026 Published by SWAAYA LIMITED, Plot 20, Block G, Scheme 1, Residential 3, OPIC Beachland Estate, Lagos/Ibadan Expressway, Lagos. Gabriel Akinadewo, MD/CEO 08023010222, 08094000056, 08052097814.