The Trump administration is locked in a high-stakes battle over China’s surging AI power, as White House officials push for strict limits on Chinese AI development while the Commerce Department questions their feasibility. China’s Moonshot lab recently unveiled Kimi K3 — a model rivaling top U.S. systems — sparking fears of covert “distillation” attacks, like one allegedly carried out by Alibaba against Anthropic. The White House is treating this as intellectual property theft, with Treasury Secretary calling for possible sanctions. Meanwhile, internal proposals include incentivizing U.S. labs to build open-weight models to counter China’s more accessible, less regulated AI tools — all while Commerce remains sidelined in the debate.
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