Tech Debate: Is 'Distillation' Just 'Plagiarism'? U.S. Treasury Secretary and National Security Agencies Condemn China’s AI Practices Ahead of New Tech War?

In July this year, a senior executive at Anthropic stated that distillation technology has helped China shorten its technological gap with the United States—from 12 to 18 months down to approximately 6 to 9 months. Recently, U.S. security agencies have repeatedly warned that, given the scale of Chinese activities, distillation has become the 'core key' of China's AI development, not merely an auxiliary method.

Recently, the U.S. National Security Agency (NSA), Cybersecurity and Infrastructure Security Agency (CISA), and the Federal Bureau of Investigation (FBI) jointly released a report accusing six Chinese AI companies—DeepSeek, 'Moonshot AI', Alibaba, MiniMax, StepFun, and Z.ai—of using 'distillation' techniques to imitate advanced U.S. AI models. (Source: The Wall Street Journal)

Even U.S. Treasury Secretary Scott Bessent has joined the chorus of condemnation, stating that this constitutes intellectual property theft. He also suggested that the U.S. might place Chinese AI companies on a blacklist as punishment. Could this be the prelude to the next round of U.S. sanctions against Chinese technology? What other tools does the White House have at its disposal? For full details, read the complete report… Available exclusively to VVIP members.

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