News India Live, Digital Desk: The ongoing ‘technology war’ between America and China has reached a new and dangerous turn. Just three weeks before the important meeting of US President Donald Trump and Chinese President Xi Jinping in Beijing, the White House has sensationally accused China of ‘industrial level’ technology theft. In a strict memo issued by the White House, it has been said that Chinese organizations are committing ‘digital theft’ of American Artificial Intelligence (AI) on a large scale. This allegation has created a stir in global diplomacy ahead of the summit to be held next month (14 May 2026).
Burglary through ‘distillation’ and ‘jailbreaking’
In this memo issued by Michael Kratsios, Director of the White House Office of Science and Technology Policy (OSTP), China has been accused of copying American AI models through ‘distillation’ technique.
What is the allegation? China is using thousands of proxy accounts and ‘jailbreaking’ techniques to extract secret data from US labs like OpenAI and Anthropic.
Motive: Through this, China is preparing such AI models at very low cost which can compete with American models. American experts are considering this as ‘theft of intellectual property’.
Trump government’s ‘action plan’ ready
The Trump administration has geared up to stop this ‘digital piracy’. The White House has made it clear that it will share intelligence with American AI companies and take strong steps to hold foreign entities accountable.
Crisis on chip supply: After this new controversy, Nvidia’s supply of powerful AI chips to China has once again come under threat. Although it had received conditional approval in January, but after the latest allegations, America may ban it again.
Parliamentary action: A bipartisan bill has also been introduced in the US Parliament, under which heavy sanctions will be imposed on foreign organizations that are caught stealing the technical features of American AI models.
China called the allegations ‘baseless’
Beijing has reacted strongly to these allegations of America. Chinese Foreign Ministry spokesperson Guo Jiakun has described Washington’s claims as completely ‘baseless’ and said that this is an attempt to discredit China’s AI achievements. China says that they are progressing on the basis of their technology and innovation and America is making such allegations due to the fear of losing its supremacy.
What will be the impact on Trump-Jinping meeting?
Experts believe that this ‘tech war’ has changed the agenda of the upcoming summit. While China wanted America to relax the restrictions on semiconductors and AI, now the Trump administration’s stance may become more stringent. This meeting to be held in Beijing on May 14 is now going to be not just a trade arena, but also a battle arena for control over the world’s most powerful technology – AI.
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