China-Based Entities Could Face Sweeping Restrictions Over AI Theft: Analysts

A White House memo accuses Chinese entities of ‘industrial-scale’ AI extraction, vowing to address the threat.

The Icons for the smartphone apps DeepSeek and ChatGPT on a smartphone screen in Beijing, on Jan. 28, 2025. Andy Wong /AP Photo

The theft of American artificial intelligence (AI) systems by China-based entities could trigger sweeping restrictions from Washington, with experts saying the move would widen the U.S.–China technology gap by years.

The White House said in an internal memo dated April 23 that foreign entities, principally based in China, are engaged in “deliberate, industrial-scale campaigns to distill U.S. frontier AI systems.”