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The Case for Imposing Costs on China’s AI Distillation Campaigns

Just Security · published 30 March 2026

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2blogs citing
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23 Apr 2026
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19 Aug 2026
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In the post
Date
Palladium Magazine
American AI May Not Survive Chinese Open-Source Read at the source ↗
19 Aug 2026
theamericanconservative.com
U.S. Accuses China of ‘Industrial-Scale’ AI theft Read at the source ↗
23 Apr 2026

Links from this post

Link
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https://cap.csail.mit.edu/research/deepseek-what-you-need-know
cap.csail.mit.edu
https://openai.com/o1/
openai.com
https://www.theregister.com/2025/09/19/deepseek_cost_train/
theregister.com
https://www.lawfaremedia.org/article/what-deepseek-r1-means-and-what-it-doesn-t
lawfaremedia.org
https://www.theguardian.com/technology/2025/jan/28/who-is-behind-deepseek-and-how-did-it-achieve-its-ai-sputnik-moment
theguardian.com
https://www.ibm.com/docs/en/watsonx/saas?topic=atlas-extraction-attack
ibm.com
https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rRmql_jJcxb4/v0
assets.bwbx.io
https://www.anthropic.com/news/detecting-and-preventing-distillation-attacks
anthropic.com
https://cloud.google.com/blog/topics/threat-intelligence/distillation-experimentation-integration-ai-adversarial-use
cloud.google.com
https://finance.yahoo.com/news/microsoft-probing-whether-deepseek-improperly-113152069.html
finance.yahoo.com
https://fortune.com/2025/01/29/deepseek-openais-what-is-distillation-david-sacks/
fortune.com
https://techcrunch.com/2026/02/23/anthropic-accuses-chinese-ai-labs-of-mining-claude-as-us-debates-ai-chip-exports/
techcrunch.com
https://ari.us/policy-bytes/explainer-deepseek-distillation-and-ai-ip-theft/
ari.us
https://www.frontiermodelforum.org/issue-briefs/issue-brief-adversarial-distillation/
frontiermodelforum.org
https://arxiv.org/html/2512.09403v1
arxiv.org
https://www.brookings.edu/articles/ai-risks-from-non-state-actors/
brookings.edu
https://www.dni.gov/files/ODNI/documents/assessments/ATA-2025-Unclassified-Report.pdf
dni.gov
https://epoch.ai/data-insights/us-vs-china-eci
epoch.ai
https://www.rand.org/pubs/commentary/2025/05/chinas-ai-models-are-closing-the-gap-but-americas-real.html
rand.org
https://www.federalreserve.gov/econres/notes/feds-notes/the-state-of-ai-competition-in-advanced-economies-20251006.html
federalreserve.gov
https://www.youtube.com/shorts/Ymdtb4ZSg9I
youtube.com
https://www.brookings.edu/articles/china-is-running-multiple-ai-races/
brookings.edu
https://epoch.ai/blog/how-much-does-it-cost-to-train-frontier-ai-models
epoch.ai
https://epoch.ai/gradient-updates/can-ai-companies-become-profitable
epoch.ai
https://www.congress.gov/119/meeting/house/118814/witnesses/HHRG-119-FA00-Wstate-PottingerM-20260114-U1.pdf
congress.gov
https://jamestown.org/deepseek-use-in-prc-military-and-public-security-systems/
jamestown.org
https://cset.georgetown.edu/publication/pulling-back-the-curtain-on-chinas-military-civil-fusion/
cset.georgetown.edu
https://www.msn.com/en-us/money/markets/deepseek-aids-china-s-military-evades-export-controls-report/ar-AA1HeLfD?ocid=finance-verthp-feeds&apiversion=v2&noservercache=1&domshim=1&renderwebcomponents=1&wcseo=1&batchservertelemetry=1&noservertelemetry=1
msn.com
https://homeland.house.gov/2025/12/19/chairmen-garbarino-moolenaar-crawford-lead-letter-asking-pentagon-to-list-deepseek-gotion-unitree-and-wuxi-as-chinese-military-companies/
homeland.house.gov
https://www.bis.gov/press-release/department-commerce-revises-license-review-policy-semiconductors-exported-china
bis.gov
https://www.reuters.com/world/china/chinas-deepseek-trained-ai-model-nvidias-best-chip-despite-us-ban-official-says-2026-02-24/
reuters.com
https://www.nextgov.com/emerging-tech/2026/01/lawmakers-worry-over-new-rule-will-allow-sales-nvidias-h200-chips-china/410696/
nextgov.com
https://www.techspot.com/news/110432-alibaba-bytedance-moving-ai-training-offshore-bypass-china.html
techspot.com
https://www.tomshardware.com/tech-industry/artificial-intelligence/chinese-ai-outfits-smuggling-suitcases-full-of-hard-drives-to-evade-u-s-chip-restrictions-training-ai-models-in-malaysia-using-rented-servers
tomshardware.com
https://docs.house.gov/meetings/JU/JU03/20250507/118204/HHRG-119-JU03-Wstate-JensenB-20250507-U5.pdf
docs.house.gov
https://lawreforminstitute.org/distillation031326.pdf
lawreforminstitute.org
https://www.ecfr.gov/current/title-15/subtitle-B/chapter-VII/subchapter-C/part-744/section-744.11
ecfr.gov
https://www.federalregister.gov/documents/2025/01/16/2025-00704/addition-of-entities-to-and-revision-of-entry-on-the-entity-list
federalregister.gov
https://www.federalregister.gov/documents/2026/01/15/2026-00789/revision-to-license-review-policy-for-advanced-computing-commodities
federalregister.gov
https://www.ecfr.gov/current/title-15/subtitle-B/chapter-VII/subchapter-C/part-734/section-734.10
ecfr.gov
https://www.asiafinancial.com/china-using-microsoft-amazon-cloud-to-beat-ai-chip-sanctions
asiafinancial.com
https://www.kharon.com/brief/bis-50-percent-rule-commerce-department-china-tech
kharon.com
https://www.federalregister.gov/documents/2025/09/30/2025-19001/expansion-of-end-user-controls-to-cover-affiliates-of-certain-listed-entities
federalregister.gov
https://www.federalregister.gov/documents/2025/11/12/2025-19846/one-year-suspension-of-expansion-of-end-user-controls-for-affiliates-of-certain-listed-entities
federalregister.gov
https://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title50-section1702&num=0&edition=prelim
uscode.house.gov
https://www.cafamerica.org/wp-content/uploads/CAFAmerica_Sanctions_WP_FINAL-1.pdf
cafamerica.org
Chinese Military Companies Sanctions Read at the source ↗
ofac.treasury.gov
https://media.defense.gov/2025/Jan/07/2003625471/-1/-1/1/ENTITIES-IDENTIFIED-AS-CHINESE-MILITARY-COMPANIES-OPERATING-IN-THE-UNITED-STATES.PDF
media.defense.gov
https://www.govinfo.gov/content/pkg/FR-2025-08-07/pdf/2025-14970.pdf
govinfo.gov
https://cset.georgetown.edu/wp-content/uploads/CSET-Pulling-Back-the-Curtain-on-Chinas-Military-Civil-Fusion.pdf
cset.georgetown.edu
https://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50-section1709&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MC1zZWN0aW9uMTcwOQ%3D%3D%7C%7C%7C0%7Cfalse%7Cprelim
uscode.house.gov
https://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title18-section1832&num=0&saved=%7CVFJBREUgU0VDUkVUUw%3D%3D%7C%7C%7C0%7Cfalse%7Cnull
uscode.house.gov
https://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title18-section1030&num=0&saved=%7CKHRpdGxlOjE4IHNlY3Rpb246MTAzMCBlZGl0aW9uOnByZWxpbSk%3D%7C%7C%7C0%7Cfalse%7Cprelim
uscode.house.gov
https://www.trtworld.com/article/77e3fbf4b9e4
trtworld.com
https://www.csis.org/analysis/consequences-chinas-new-rare-earths-export-restrictions
csis.org
https://www.npr.org/2025/01/14/nx-s1-5258952/new-york-times-openai-microsoft
npr.org
https://dig.watch/updates/musk-anthropic-training-data-dispute
dig.watch
https://sg.news.yahoo.com/deepseeks-ai-distillation-theft-openai-093000192.html
sg.news.yahoo.com
The Case for Imposing Costs on China’s AI Distillation Campaigns Read at the source ↗
justsecurity.org