US panic is missing the point on Chinese AI
The battle over distillation is raising a bigger question.
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Labelling Chinese AI models as rip-offs has become a convenient talking point, says the writer.
PHOTO: REUTERS
Catherine Thorbecke
The rising use of Chinese artificial intelligence models in the US has led to growing anxiety among Silicon Valley executives, Washington lawmakers and even officials in Beijing. But the warning lights have been flashing for a while.
Since 2025, I’ve been tracking the trend of American start-ups using Chinese AI. In 2026, the shift has become harder to ignore. But it didn’t emerge in a vacuum. China’s low-cost, open-weight push was always going to appeal to developers, the backbone of AI innovation. Washington’s wake-up call arrived late.
