China Warns of 'All Necessary Measures' in Response to U.S. AI Sanctions Pressure

China has openly warned of taking all necessary measures to protect its interests after the U.S. threatened sanctions against its AI firms. The dispute centers on U.S. investigations into whether Chinese labs distilled models from American high-performance AI systems, citing intellectual property infringement. China's Ministry of Commerce rejected these claims, asserting that some Chinese models were launched around the same time as U.S.-led systems and have reached advanced levels in fields like frontend coding. Beijing also countered that U.S. firms have used Chinese models in distillation processes, with over 200 American startups requesting access to Chinese open-source models to maintain competitiveness. The U.S. stance on intellectual property violations has been met with China's strong opposition, emphasizing the need to respect the bilateral consensus between leaders to prevent escalating tensions.