Washington: The United States has launched a global diplomatic effort to raise concerns over alleged intellectual property misuse by Chinese artificial intelligence firms, sharpening tensions with Beijing ahead of a planned visit by Donald Trump to China.
According to a diplomatic cable accessed by Reuters, the US State Department has instructed its embassies and consulates worldwide to engage with foreign governments on the risks associated with Chinese AI companies allegedly using “distillation” techniques on American-developed models.
Focus on AI model distillation concerns
The cable highlights concerns that firms, including DeepSeek, may be leveraging outputs from advanced US AI systems to train lower-cost models — a process known as distillation.
Distillation involves using responses generated by large, sophisticated AI systems to train smaller models, significantly reducing the cost and computational resources required to develop competitive tools.
US officials argue that such practices, if conducted without authorisation, could amount to intellectual property violations and undermine the technological edge of American AI companies.
Diplomatic outreach intensifies
The directive calls on US diplomats to brief foreign counterparts about what it describes as “risks of utilising AI models distilled from US proprietary systems.” The move is aimed at building international consensus and preparing the ground for further policy action.
A separate communication has reportedly been sent to Beijing, indicating that the issue will be formally raised with Chinese authorities.
The cable signals a coordinated global campaign, suggesting that Washington views the issue as a strategic priority in the broader technological rivalry with China.
Chinese firms expand capabilities
The development comes as DeepSeek unveiled a preview of a new AI model designed to run on hardware from Huawei, highlighting China’s growing independence in advanced computing technologies.
Other Chinese firms mentioned in the cable include Moonshot AI and MiniMax, though none have publicly responded to the allegations.
The rapid progress of these companies has intensified competition in the global AI landscape, particularly as they focus on cost-efficient alternatives to Western-developed systems.
Beijing rejects allegations
China has pushed back strongly against the accusations. The Chinese Embassy in Washington described similar claims made earlier by US officials as “baseless,” reiterating that Beijing places high importance on protecting intellectual property rights.
The exchange reflects ongoing mistrust between the two countries in the technology domain, especially in areas such as semiconductors, AI, and data governance.
Wider implications for AI security
The US cable also raises concerns that distilled models may lack key safety and alignment mechanisms present in original systems. Officials warn that such models could potentially bypass safeguards designed to ensure reliability, neutrality, and responsible use.
These concerns tie into broader debates about AI governance, including how to regulate powerful technologies while maintaining innovation and competition.
Timing linked to geopolitical developments
The diplomatic push comes weeks before a planned meeting between Donald Trump and Chinese President Xi Jinping in Beijing.
Analysts believe the issue could feature prominently in discussions, potentially complicating efforts to stabilise relations after a recent easing of tensions between the two global powers.
Conclusion
The United States’ decision to mobilise its diplomatic network over alleged Chinese AI practices marks a significant escalation in the ongoing technology rivalry with China. As artificial intelligence becomes a cornerstone of economic and strategic power, disputes over intellectual property and ethical use are likely to intensify. The upcoming high-level engagements between Washington and Beijing may determine whether cooperation or confrontation defines the next phase of the global AI race.