US THREATENS SANCTIONS ON CHINESE AI MODELS

Bessent's comments signal a potential new front in the U.S.-China technology conflict. The administration has already imposed export controls on advanced semiconductors and chip-making equipment critical to AI development. Open-source AI models from Chinese companies have gained significant traction globally, offering alternatives to Western models like OpenAI's GPT and Meta's Llama. U.S. officials argue these models incorporate stolen intellectual property and proprietary techniques. Sanctions could target Chinese AI companies or restrict their models' distribution internationally. The move would complement existing restrictions designed to slow China's AI capabilities. China has countered previous U.S. restrictions with its own export controls on critical materials. The escalating tech competition between the two nations continues to reshape global AI development and deployment strategies.