US threatens sanctions against Chinese AI models over IP theft
Treasury Secretary Scott Bessent said the U.S. could sanction Chinese open AI models over alleged IP theft, expanding the Trump administration's campaign to slow China's AI advances.
The U.S. government is weighing sanctions against Chinese open AI models, according to a report based on a monitored public feed from TechCrunch. Treasury Secretary Scott Bessent said the administration could target the models over alleged intellectual property theft, widening President Donald Trump’s effort to slow China’s progress in artificial intelligence.
The comments point to a new phase in the U.S.-China technology rivalry, with policy attention moving beyond chips, advanced semiconductors and export controls to the AI systems themselves. Bessent’s remarks suggest Washington is considering whether open-weight or openly distributed Chinese models could face penalties if U.S. officials determine they were built using improperly obtained IP.
The feed summary did not provide details on what specific models could be affected, what form any sanctions might take or when such action could be announced. It also did not include a response from Chinese AI developers or officials. Still, the possibility of sanctions marks a notable expansion of the Trump administration’s campaign to constrain China’s AI sector.
The move would add pressure to a field already facing trade restrictions and geopolitical scrutiny. Open AI models have become an important area of competition because they can be widely shared, adapted and deployed by companies and developers. That openness has also raised concerns among U.S. policymakers that Chinese systems could spread more quickly and reduce the impact of existing export limits.
Bessent’s statement frames the issue around alleged intellectual property theft, a charge that has long been central to tensions between the two countries’ technology sectors. By linking that concern to sanctions, the administration appears to be signaling that it may use financial and legal tools, not just export restrictions, to slow the diffusion of Chinese AI capabilities.
The report was published through a monitored public feed and is attributed to TechCrunch. Source: TechCrunch - https://techcrunch.com/2026/07/21/us-threatens-sanctions-against-chinese-ai-models-over-ip-theft/
