China has threatened to take “necessary measures” after the United States imposed sanctions on five Chinese entities linked to a former Google engineer convicted of stealing the technology giant’s artificial intelligence trade secrets.
Beijing rejected the allegations, insisting China’s advances in artificial intelligence stem from independent innovation and long-term investment rather than the theft of foreign technology.
The dispute centres on Linwei Ding, a former Google engineer convicted in January of stealing confidential AI technology while secretly working with two China-based companies.
After leaving Google, Ding went on to establish Zhisuan, a startup that reportedly sought to replicate aspects of Google’s supercomputing infrastructure.
The US sanctions target Zhisuan, MiraclePlus, an incubator that invested in the startup in exchange for equity, and three affiliated entities.
According to reports, the action marks the first time Washington has used its trade secret-related sanctions authority against a network of Chinese startups and associated organisations rather than a state-owned enterprise.
Beijing rejects US allegations
Chinese authorities pushed back against the sanctions, arguing that the country’s AI industry had developed through sustained investment, research and independent innovation.
Beijing maintained that China’s technological progress had “nothing to do” with the alleged theft of foreign intellectual property and warned that it would take necessary measures in response to the US action.
The dispute highlights growing tensions between Washington and Beijing over access to advanced computing technology, intellectual property and the global race to develop artificial intelligence.
US officials have increasingly focused on protecting sensitive technologies that underpin advanced AI systems, including the specialised computing infrastructure used to train powerful models.
Former Google engineer faces separate legal proceedings
Ding was convicted by a US jury in January after prosecutors accused him of taking confidential Google AI trade secrets while secretly working with two Chinese companies.
The case centred on sensitive information related to Google’s computing infrastructure and technologies used to develop and train AI models.
However, the judge dismissed the espionage charges and sentenced Ding to 12 months in prison. The US Department of Justice is appealing the outcome.
The distinction between the trade secret convictions and the dismissed espionage counts is significant, as the sanctions against the associated companies represent a separate government action.
The case has also raised questions about whether existing penalties adequately deter the theft of highly valuable technology in an increasingly competitive global AI industry.
With Washington tightening its approach to technology transfers and Beijing rejecting the allegations behind the sanctions, the dispute adds another flashpoint to the broader US-China competition over artificial intelligence.
Sources: Associated Press and The Washington Post.
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