The Trump administration has accused Chinese companies, including DeepSeek and Moonshot AI, of engaging in industrial-scale exploitation of American artificial intelligence technology through a practice known as model distillation. This technique allows smaller AI models to replicate the capabilities of larger, proprietary models, such as OpenAI's GPT-4, without the associated research and development costs. The administration's memo, issued by Michael Kratsios, the President's chief science and technology adviser, outlines concerns that these companies are using deceptive tactics to access and replicate advanced AI systems. In response, the US plans to implement stricter export controls on AI chips and add more Chinese firms to the Department of Commerce’s Entity List, which restricts their access to US technology. The Chinese government has rejected these accusations, asserting that they undermine its technological progress and calling for cooperation instead. The ongoing tensions highlight the competitive landscape in AI development, where both nations are vying for dominance.