The US is preparing to restrict American companies’ use of Chinese-made AI models due to national security concerns. According to CNBC, an unnamed State Department spokesperson stated that such models are “designed to advance Beijing’s narratives, censor dissent and reflect CCP ideology and values.”
US companies are reportedly opting for these Chinese AI models because of cost advantages and comparable quality. Coinbase CEO Brian Armstrong acknowledged using two Chinese AI models, GLM 5.2 from Z.Ai and Kimi 2.7 from Moonshot. Lindy’s CEO noted the company’s switch to the Chinese AI model DeepSeek to manage rising costs.
The surge in American companies adopting Chinese AI models, including Airbnb and Uber, coincides with Anthropic’s suspension of two models, Mythos 5 and Claude Fable 5, at the US government’s request, according to Nikkei Asia. This raises questions about the stability of the current US government policy towards domestic AI development.
It remains unclear if the US can impose a broad ban on the use of Chinese AI models beyond changing its procurement policies. The US government may also be hesitant to restrict open source AI models due to potential First Amendment issues. Furthermore, companies may find it challenging to modify operations in international markets; for example, Apple utilizes Alibaba’s generative AI for iPhones sold in China.
On the Chinese side, according to Reuters, authorities are reportedly in discussions with domestic firms to prevent the use of homegrown AI technologies in foreign markets. The Chinese Ministry of Industry and Information Technology has claimed that Anthropic’s Claude Code includes a backdoor, which it says poses a “serious threat.”
