China’s Adversarial AI Distillation of US Frontier Models

Minding The Gap | SCSP Interactive Report
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China’s Adversarial AI Distillation
of U.S. Frontier Models

American innovation sets the frontier. Explore how Chinese firms may be extracting those capabilities—and what it takes to protect the lead.

An interactive companion to the October 2026 SCSP report. Figures reflect the report’s evidence and reporting period.
44.8M+

Claude exchanges attributed to four Chinese AI firms by Anthropic.

~49,000

Fraudulent accounts cited across Anthropic’s February and June disclosures.

24HOURS

Within a day, MiniMax reportedly redirected nearly half its traffic to a new Claude release.

01

The scale of extraction

Industrial scale.
Frontier targets.

The report describes coordinated campaigns aimed at reasoning, coding, and tool use. Select a firm to explore the alleged activity behind the numbers.

Reported Claude exchanges

Click a bar or use Tab + Enter to inspect a campaign.

Provider-reported allegation

Alibaba / Qwen

28.8 million+
CLAUDE EXCHANGES

Anthropic attributed exchanges through almost 25,000 fraudulent accounts to Alibaba-affiliated operators. The reported targets included agentic reasoning, software engineering, and long-horizon tasks.

Reported activity: April 22–June 5, 2026. The source figure also notes Alibaba’s denial of a separate GPU-supply allegation.

How to read these numbers

These are provider-reported allegations, not independently verified counts. The company figures are lower bounds and cover differing reporting windows. The report separately states an aggregate of “at least 44.8 million” exchanges and roughly 49,000 accounts. The listed company thresholds sum to 45.35 million; this companion preserves the report’s headline and each printed figure rather than presenting a newly calculated total. Bar lengths use the printed thresholds on a linear scale.

The key distinction is authorization. Distillation is a standard development technique. The report’s concern is systematic extraction using deception or access-control circumvention to reproduce a competitor’s capabilities.

02

Follow the capability

From model access
to lasting capacity.

“Transfer stations” sit between users and frontier-model providers. The report traces how this access can feed competing models and, ultimately, state systems.

The transfer-station pathwayA developer sends requests through a transfer station to a U.S. API. Responses return through the relay and can be used to train a student model. Open weights allow downstream reuse. Developer’s appSEEKS MODEL ACCESS Transfer stationMASKS ORIGIN U.S. frontier APIPROCESSES REQUEST QUERYQUERYOUTPUTOUTPUT TRAIN Student modelRETAINS CAPABILITIES REUSE Downstream useINCLUDING STATE SYSTEMS

Stage 01 / Access

An intermediary masks origin.

Transfer stations provide proxy access to American frontier models. The report describes these relays as a way to obscure who is using a service and bypass geographic and identity restrictions.

The relay is an access layer. Its presence alone does not prove that every customer is conducting distillation.

This diagram illustrates the overall mechanism; it is not a traced chain for every model.

03

The changing capability gap

A lead measured
in fewer points.

The report’s Epoch Capabilities Index chart shows rapid convergence. Move through six snapshots to see how the gap changes—and where the evidence has limits.

United StatesChinaAPPROXIMATE ECI
Selected snapshots of U.S. and Chinese frontier performanceApproximate visual estimates. The gap falls from roughly 26 points in September 2023 to roughly 3 points in January 2025, then grows to roughly 9 points by November 2025. The data table provides all plotted values.
January 2025

DeepSeek-R1 closes in.

≈3
ECI POINTS BETWEEN THE FRONTIERS

DeepSeek-R1 brings the Chinese frontier to approximately three points of the U.S. frontier. Documented government integrations cluster in 2025 and 2026, after this jump.

U.S. FRONTIER≈142
CHINESE FRONTIER≈139

Values and timing are visually approximated; connecting lines guide the eye and are not a complete release history. ECI aggregates performance across more than 50 benchmarks. Chart credit: Epoch AI (CC BY).

Convergence does not establish causation. The report recognizes genuine Chinese engineering gains. Benchmark data alone cannot separate indigenous progress from gains due to distillation. A later comparison places Claude Fable 5 at 163 and Kimi K3 at 158; those figures are outside this chart’s plotted period.
04

From commercial models to state systems

The pathways
are not all the same.

DeepSeek and Qwen have documented state use and research. MiniMax and Moonshot have indirect ties. Filter the evidence, then open a card for the details.

6 EVIDENCE CARDS
Documented deployment

AI in police
workflows.

Hytera’s intelligence, command,
and execution platform

DEEPSEEK MoE

The report describes three modules: radio transcription into incident logs; dispatch files linked to body-camera feeds and facial-recognition checks; and spoken queries converted into database searches and response plans.

Why it matters: AI helps officers act on information collected by existing systems. Hytera announced the integration in February 2025.

Documented deployment

Local models.
No API to revoke.

National University of Defense Technology
People’s Liberation Army

DEEPSEEK

NUDT describes local DeepSeek deployment for political and ideological education, physically isolated from the internet and accompanied by content-review mechanisms.

Why it matters: A locally deployed open-weight model does not require an ongoing relationship with the original provider.

Patent / research

Voice and gesture
for unmanned systems.

Military Intelligence Research Institute
PLA Academy of Military Sciences

QWEN · MODEL UNSPECIFIED

A patent describes using tracked hand gestures and speech-to-text commands to control unmanned platforms, with an unspecified Qwen model.

Evidence boundary: A patent establishes described research or a proposed system. It does not by itself verify operational deployment.

Patent / research

Simulating the spread
of misinformation.

NUDT School of Information
and Communication

QWEN2.5-0.5B-INSTRUCT

A patent describes small models acting as distinct network users, with misinformation seeded at one node to observe how it spreads.

Why it matters: The report assesses that many inexpensive model instances could help researchers test messages at scale. This is a research pathway, not proof of a deployed influence operation.

Indirect pathway

A leadership link
to surveillance.

MiniMax leadership’s prior roles
at SenseTime

MINIMAX

Three senior leaders, including MiniMax’s chief executive, previously worked at SenseTime. The report also discusses consumer-data collection and potential legal-access mechanisms.

Evidence boundary: The report identifies no documented PRC government adoption of MiniMax. Personnel ties and potential state access are indirect pathways.

Indirect pathway

State-backed capital.
A distribution channel.

Moonshot investors and
China Mobile’s MoMA platform

MOONSHOT / KIMI

The report describes state-backed investors and China Mobile’s inclusion of Kimi in a model platform intended for government-affairs and other applications.

Evidence boundary: These are financing and distribution ties. The report identifies no evidence of direct PLA or Ministry of Public Security adoption of Moonshot.

The common denominator

Open weights can be copied and deployed locally. The report argues that capability gains can therefore diffuse beyond the developer’s control. Documented adoption of a model does not establish the provenance of every capability inside it.

05

Why it matters

From revocable
access to durable
capability.

Threat reports already describe AI-assisted surveillance, influence, and cyber activity. SCSP warns that distillation could move these capabilities into models that U.S. providers cannot monitor or revoke.

These cases illustrate uses and risks of AI. They are not, by themselves, evidence that the activities were enabled by distillation.

01

Surveillance & network mapping

OPENAI · “PEER REVIEW” · 2025

Likely China-origin actors researched U.S. think tanks and officials, analyzed Uyghur protest materials, drafted dissident commentary, and worked on a claimed social-media monitoring tool.

Limit: OpenAI attributed the activity only to likely China-origin actors. The report presents it as an illustration of potential surveillance capability.

02

Intimidation & transnational repression

OPENAI · “CYBER SPECIAL OPERATIONS” · 2026

An account linked to Chinese law enforcement described overseas intimidation, impersonation, forged documents, and monitoring workflows involving DeepSeek-R1, Qwen2.5, and YOLOv8.

Limit: The descriptions referred to hundreds of personnel and thousands of fake accounts, but OpenAI could not verify the full scope.

03

Faster reconnaissance & scripting

OPENAI + GOOGLE · CYBER REPORTING · 2025

APT5- and APT15-associated accounts used AI for reconnaissance, scripting, and infrastructure profiling. Google reported similar activity by more than 20 PRC-backed groups.

Limit: Neither provider found fundamentally novel capabilities. The significance was the potential to increase operational speed and scale.

04

From assistance to orchestration

ANTHROPIC · CYBER REPORTING · 2025

The report cites Claude use across 12 of 14 MITRE ATT&CK tactics in one campaign. In a later case, GTG-1002 reportedly targeted roughly 30 entities, with Claude performing 80–90% of tactical work.

Limit: These are provider-reported findings. Humans retained decisions about escalation and exfiltration.

06

The policy response

Protect the frontier.
Compete in the open.

The report pairs stronger protection against extraction with a competitive American open-weight ecosystem. Explore its three recommendations.

Recommendation 01 / Legal clarity

Clarify the Economic
Espionage Act.

The report calls for clearer treatment of systematic harvesting of proprietary outputs or reasoning traces to reproduce model capabilities for a foreign government.

  • Direct the Department of Justice to distinguish adversarial distillation from authorized research and ordinary use.
  • Give prosecutors a clearer basis for pursuing deception and access-control circumvention in state-linked campaigns.

The report’s conclusion

“Innovation alone is not an advantage.
Protected innovation is.”

SCSP’s argument is to raise the cost of extraction while ensuring the open tier the world builds on is competitive, American, and transparent.

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