AI. A person visits the World Artificial Intelligence Conference in Shanghai, China July 26, 2025

Go Nakamura/Reuters

'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 Chinese commerce ministry spokesperson says

BEIJING, China – China’s commerce ministry on Monday, July 27, accused the United States 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 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.