Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Fewer stores, more Bash: TFG's online pivot gathers pace

      Fewer stores, more Bash: TFG’s online pivot gathers pace

      6 November 2026
      Tesla pulls the plug on the Cybertruck

      Tesla pulls the plug on the Cybertruck

      6 November 2026
      AA boss gives South Africa's car industry five years - Bobby Ramagwede

      AA boss gives South Africa’s car industry five years

      6 November 2026
      AI's black box may not be so black after all

      AI’s black box may not be so black after all

      6 November 2026
      Big wind farms drive a surge in private power registrations

      Big wind farms drive a surge in private power registrations

      6 November 2026
    • World
      John Ternus faces first big test as Apple CEO - John Ternus

      John Ternus faces first big test as Apple CEO

      2 November 2026
      Alleged Israeli spy company heavily targeted Starlink users

      How online ads were used to hunt Starlink users

      28 October 2026
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
      PHP flaws trigger global scramble as hackers pounce

      PHP flaws trigger global scramble as hackers pounce

      22 October 2026
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
    • In-depth
      Ducking hell: inside Apple's hidden list of words the iPhone won't suggest

      Ducking hell: inside Apple’s hidden list of words the iPhone won’t suggest

      6 November 2026
      Why investors are souring on Netflix

      Why investors are souring on Netflix

      22 October 2026

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
    • TCS
      TCS+ | Old Mutual's Celiwe Ross on leading people through AI - Old Mutual

      TCS+ | Old Mutual’s Celiwe Ross on leading people through AI

      6 November 2026
      TCS+ | How the Apple ecosystem drives productivity for SMEs - Sudesh Pillay iStore and Kevin McLennan

      TCS+ | How the Apple ecosystem drives productivity for SMEs

      6 November 2026
      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      26 October 2026
      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs - Réan van Niekerk, Metacom

      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs

      23 October 2026
      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf - Jason Oehley and Andre Den Hond

      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf

      22 October 2026
    • Opinion
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

      Before South Africa licenses Starlink, it should look at Ukraine

      21 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » AI and machine learning » Beijing warns of retaliation over US threats to Chinese AI firms

    Beijing warns of retaliation over US threats to Chinese AI firms

    US treasury secretary Scott Bessent has warned sanctions and Entity List designations are now on the table.
    By Agency Staff28 July 2026
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Beijing warns of retaliation over US threats to Chinese AI firms

    China’s commerce ministry has accused the US of “AI hegemonism” and threatened countermeasures after senior US officials said Chinese AI companies could face investigations, sanctions and trade restrictions over the alleged theft of US technology.

    The ministry said on Monday that Washington was threatening Chinese companies with punishment based on allegations they used “distillation” to copy advanced US AI models, despite what it called a lack of factual or legal grounds.

    Model distillation is a widely used AI training technique in which developers use the outputs of a more capable model to train or improve another system. US officials say they distinguish between legitimate distillation and large-scale extraction that amounts to intellectual property theft.

    China will take all necessary measures to firmly safeguard its legitimate rights and interests

    “For any action that causes substantive harm to Chinese interests, China will take all necessary measures to firmly safeguard its legitimate rights and interests,” a ministry spokesman said in a statement.

    The comments mark an escalation in a dispute centred on Beijing-based Moonshot AI, whose recently released Kimi K3 model has drawn attention for its coding capabilities and intensified debate in Washington over whether Chinese developers are copying US models or rapidly closing the technological gap through their own research. The controversy echoes the reaction in the US to the rise of Chinese start-up DeepSeek last year.

    White House office of science & technology policy director Michael Kratsios said last week the US government had information indicating Moonshot distilled Anthropic’s Claude Fable 5 model to develop Kimi K3.

    Distillation

    Kratsios alleged Moonshot had built a sophisticated internal platform to conduct large-scale distillation of US models and switched between multiple methods of access to avoid detection. He also alleged the company had acquired servers equipped with Nvidia’s GB300 chips and accessed such systems in Thailand, likely to train its models.

    US treasury secretary Scott Bessent later warned that Chinese companies could face financial sanctions or placement on the commerce department’s Entity List, which restricts access to US technology.

    Read: Out of the blue, China has a new most-valuable company

    “We support open-source AI and the innovation it unlocks. But open source is not open season on American IP,” Bessent wrote on social media platform X. “When PRC (Chinese) firms conduct covert, industrial-scale distillation attacks that cross the line into IP theft, sanctions and Entity List designations will be on the table.”

    Moonshot has rejected suggestions that Kimi K3’s performance was achieved via distillation, telling China’s National Business Daily last week that its performance gains came from original changes to underlying architecture.

    Xi Jinping and Donald Trump
    US President Donald Trump, right, shakes hands with Chinese President Xi Jinping in Beijing, China, on 15 May. Evan Vucci/Reuters

    Placement on the Entity List could severely restrict Moonshot’s access to US semiconductors, software and cloud services. The US used the trade blacklist as a central part of its campaign against Chinese telecommunications equipment maker Huawei beginning in 2019.

    Anthropic said in February it had identified more than 3.4 million interactions with its Claude models linked to Moonshot. It said hundreds of fraudulent accounts were used to target capabilities including reasoning, coding, data analysis, tool use, computer vision and the operation of computers.  — Eduardo Baptista, (c) 2026 Reuters

    • Subscribe to TechCentral’s daily newsletter
    • Get breaking news alerts on WhatsApp
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Donald Trump Kimi K3 Michael Kratsios Moonshot AI Scott Bessent Xi Jinping
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleTCS+ | A smarter approach to cloud for South African businesses
    Next Article Canal+ bought out Showmax minority shareholder before killing it

    Related Posts

    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026
    AI

    AI is now propping up the world economy, says IMF

    12 October 2026
    Sam Altman: the world should accept 'some bad things' from AI

    Sam Altman: the world should accept ‘some bad things’ from AI

    6 October 2026
    Company News
    XLink brings dual-network resilience to eSim

    XLink brings dual-network resilience to eSim

    6 November 2026
    CambriLearn parents can now ask AI whether their child went to class

    CambriLearn parents can now ask AI whether their child went to class

    6 November 2026
    'There was hunger for alternatives': PSET launches at Purcon 2026 - Ebenezer Smith

    ‘There was hunger for alternatives’: PSET launches at Purcon 2026

    6 November 2026
    Opinion
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026
    Nonkqubela Thathakahle Jordan-Dyani

    Why cybersecurity is now a national security issue for South Africa

    15 October 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Fewer stores, more Bash: TFG's online pivot gathers pace

    Fewer stores, more Bash: TFG’s online pivot gathers pace

    6 November 2026
    Tesla pulls the plug on the Cybertruck

    Tesla pulls the plug on the Cybertruck

    6 November 2026
    AA boss gives South Africa's car industry five years - Bobby Ramagwede

    AA boss gives South Africa’s car industry five years

    6 November 2026
    AI's black box may not be so black after all

    AI’s black box may not be so black after all

    6 November 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter