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White House Says China is Stealing AI Tech from the U.S.

Articles | April 23, 2026 | by Catholics for Catholics

The U.S. accused China of thieving U.S. artificial intelligence labs’ intellectual property on an industrial scale, in a memo that threatens to rouse frictions prior to a summit between American and Chinese leaders next month.

By Catholics for Catholics

The U.S. accused China of thieving U.S. artificial intelligence labs’ intellectual property on an industrial scale, in a memo that threatens to rouse frictions prior to a summit between American and Chinese leaders next month.

“The US government has information indicating that foreign entities, principally based in ​China, are engaged in deliberate, industrial-scale campaigns to distill US frontier AI systems,” Michael Kratsios, director of the White House ⁠Office of Science and Technology Policy, wrote in a memo shared on ​social media on Thursday and first reported by the Financial Times.

“Leveraging tens ⁠of thousands of proxy accounts to evade detection and using jailbreaking techniques to expose proprietary information, these coordinated campaigns systematically extract capabilities from American AI models, exploiting American expertise and innovation,” he added, according to a story by Newsmax.

Meanwhile, the Chinese Embassy in Washington did not immediately respond ​to a request for comment.

Kratsios memo may set tensions between the world’s two superpowers, which have been locked in an extensive tech feud that had come to somewhat of an impasse dealt last October.  President Donald Trump is set to visit Chinese President Xi Jinping in Beijing.

In addition, it casts doubt if Washington ⁠will permit Nvidia’s powerful AI chips to be shipped to China. The Trump administration gave a ⁠green ⁠light to the sales in January, with stipulations.

Nevertheless, Commerce Secretary Howard Lutnick said that no shipments had yet been made.

Distillation is the process of training smaller AI models using the output of larger ones as part of an effort to lower the ​costs of training a powerful new AI tool.

The memo, addressed to government agencies, says the administration will share information with American AI companies about the distillation ​efforts, and “explore a range of measures to hold foreign actors accountable” for the campaigns.

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