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Physix Frontier · News Briefing Card (IT Home · Sep 9, 2026)

MOFCOM Rejects US AI Distillation Claims as Double Standard

KEY FACTS

  • Three US agencies issued a joint statement accusing six Chinese AI firms of unauthorized distillation of American models.
  • China's Ministry of Commerce responded that the accusations lack evidence, politicizing normal technology and applying double standards.
  • Beijing noted that distillation is an industry norm and cited US R&D reports disclosing the distillation of Chinese models.
  • The ministry warned that China will take firm countermeasures if the US implements containment actions.

PHYSIX OBSERVATION

This war of words over 'distillation' is essentially the US attempting to rewrite AI competition rules through a national security narrative. By weaponizing a technically neutral practice, Washington seeks legal pretexts for compute monopolies and curbing China's AI rise. Beijing's emphasis on open-source reciprocity and parity signals zero concession on core interests, foreshadowing heightened decoupling risks and geopolitical fragmentation in global tech standards.

Source: IT Home report