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Distinct Post > World > China > US Accuses China of Large-Scale AI Theft, Escalating Tech Tensions Ahead of Summit
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US Accuses China of Large-Scale AI Theft, Escalating Tech Tensions Ahead of Summit

Henry Ortiz Published April 23, 2026
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The administration of Donald Trump has accused China of carrying out large-scale theft of American artificial intelligence technology, escalating tensions between the two global powers ahead of a planned summit between US and Chinese leadership.

Contents
Allegations of Systematic AI Model TargetingClaims of Proxy Networks and Evasion TechniquesRising Tech Tensions Ahead of SummitChip Export Questions Add to UncertaintyNext Steps From Washington

Allegations of Systematic AI Model Targeting

In a memo released by the White House Office of Science and Technology Policy, officials claim that foreign entities—primarily based in China—are engaged in coordinated efforts to extract information from US AI systems.

The memo, authored by Michael Kratsios, alleges that these operations involve large-scale networks designed to evade detection and access proprietary AI model data.

FT Exclusive: A Trump administration official says Chinese entities are stealing from American AI labs. https://t.co/if9QBlO0nY pic.twitter.com/eXa1aWPLYH

— Financial Times (@FT) April 23, 2026

According to the document, these campaigns aim to “distill” advanced US AI systems, a process where smaller models are trained using outputs from larger, more powerful systems.

Claims of Proxy Networks and Evasion Techniques

The memo further states that tens of thousands of proxy accounts are being used to bypass security measures, alongside so-called “jailbreaking techniques” intended to extract sensitive information from frontier AI models.

Officials say these actions represent a systematic effort to leverage US innovation and expertise.

Rising Tech Tensions Ahead of Summit

The allegations come just weeks before a scheduled meeting between Donald Trump and Chinese President Xi Jinping in Beijing, adding pressure to already strained relations.

The US-China relationship has long been shaped by competition over technology, particularly in areas such as semiconductors and artificial intelligence.

Chip Export Questions Add to Uncertainty

The report also follows confirmation that no advanced Nvidia H200 AI chips have been sold to China, despite earlier signals of potential approvals under conditions.

Commerce Secretary Howard Lutnick recently indicated that no shipments had yet taken place, raising further uncertainty over future export policy.

Next Steps From Washington

The memo states that the US government will share information with American AI companies regarding alleged distillation attempts and explore possible measures to hold foreign actors accountable.

As of now, China’s embassy in Washington has not issued an official response to the claims.

The development underscores the intensifying geopolitical competition over artificial intelligence, which is increasingly seen as a defining technology of global power in the coming decades.

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Henry Ortiz April 23, 2026 April 23, 2026
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