Image Credentials: Image Title: United States accuses China of large-scale theft of AI technology. Source: (chatgpt.com) Date: April 2026. Attribution: This image was created using AI-generated imagery (chatgpt.com) by Open Chronicle and does not depict a real-world scene.
Open Chronicle | Technology & Geopolitics
The White House has accused China of conducting what it describes as an “industrial-scale” campaign to steal artificial intelligence technology from American companies, escalating tensions between the world’s two largest economies.
In a memo released Thursday, Michael Kratsios, director of the Office of Science and Technology Policy, alleged that foreign entities, primarily based in China, are systematically extracting knowledge from advanced U.S. AI systems.
Allegations of coordinated campaigns
According to the memo, the alleged operations involve the use of thousands of proxy accounts to bypass safeguards and access proprietary AI models. These efforts reportedly rely on techniques such as “jailbreaking” systems to uncover sensitive data and replicate capabilities.
Officials claim that such activities are designed to accelerate the development of competing AI technologies by leveraging American innovation without authorization.
The process known as “distillation”, which involves training smaller models using outputs from more advanced systems, was highlighted as a key method being exploited.
Beijing rejects claims
The Chinese Embassy in Washington strongly denied the accusations, calling them unfounded. In a statement, the embassy said China places significant importance on protecting intellectual property rights and opposes what it described as baseless allegations.
The dispute adds to a long-running technological rivalry between Washington and Beijing, particularly in areas such as artificial intelligence, semiconductors, and advanced computing.
Rising tensions ahead of the summit
The accusations come just weeks before a planned meeting between Donald Trump and Xi Jinping in Beijing, raising concerns that the issue could complicate diplomatic efforts.
Relations between the two countries had shown signs of stabilization following a détente reached last year, but the latest claims risk reopening divisions in the ongoing tech competition.
Potential policy responses
The memo indicates that the U.S. government may take further steps to counter the alleged activities, including sharing intelligence with American AI firms and exploring measures to hold foreign actors accountable.
It also raises uncertainty over future technology exports, particularly regarding advanced AI chips produced by companies such as Nvidia. While Washington previously approved limited sales to China under specific conditions, officials have suggested shipments have not yet begun.
A widening tech rivalry
The dispute highlights the growing strategic importance of artificial intelligence, not only as a driver of economic growth but also as a key element of national security.
As both countries invest heavily in AI development, concerns over intellectual property, data access, and technological leadership are likely to remain central to their relationship.