China’s commerce ministry is firing back at the U.S. over accusations of “AI hegemonism,” slamming Washington’s claims that Chinese firms like Moonshot AI are stealing U.S. AI models via “distillation” as baseless. The U.S. warns sanctions and Entity List placement if proven, citing Nvidia chip purchases and alleged Claude model interactions — but Moonshot denies copying, crediting its own architectural innovations. With Huawei-style tech restrictions looming, this escalating tech cold war pits innovation against accusations of theft, as China vows to defend its interests with force if needed.
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