Deep Tide TechFlow message: On July 27, a spokesperson for China’s Ministry of Commerce responded to a U.S. claim that it will investigate Chinese AI companies’ “distillation” of U.S. frontier models and may impose sanctions. The spokesperson said this move lacks factual and legal grounds and is a typical act of artificial intelligence hegemony.

China said that some Chinese model capabilities are already at a leading level, and that nearly 200 U.S. startups have urged the government not to cut off access to China’s open-source models. China urged the U.S. to stop smearing and threatening sanctions, or else it will take all necessary measures to safeguard its own rights and interests.