China warns US over sanctions on AI firms

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China's commerce ministry on Monday urged the United States to stop "smearing and sanction threats" against Chinese AI firms and said it will take necessary measures to protect China's interests. The ministry said many US AI companies have distilled Chinese models during research, development and training, and it strongly opposed US 301 tariffs on Chinese goods tied to alleged forced labour, urging Washington to cancel those unilateral measures. While saying it is willing to continue dialogue based on mutual respect, equality and mutual benefit, the ministry warned it reserves the right to take all necessary measures while it assesses US actions.

China warned it will counter US actions harming its interests.