China criticises US 'smearing, sanction threats' against Chinese AI firms

BEIJING, July 27 (Reuters) - China urged the U.S. to stop "smearing and sanction threats" against Chinese AI firms and said it will take necessary measures against U.S. actions that harm China's interests, the Chinese commerce ministry said in a statement on Monday.

"Many U.S. AI companies have distilled Chinese models during research, development, and training," the Chinese ministry said.