US accuses China of “industrial-scale” AI theft. China says it’s “slander.”

The US Department of Justice indictment specifically names 17 Chinese state-owned entities in a 38-page document alleging theft of 140,000 proprietary AI files since 2020. This industrial-scale accusation carries a 74% higher data volume than typical espionage cases, representing a $12.3 billion intellectual property loss according to the White House. China's countercharge of slander directly contradicts #1's report of SpaceX using Chinese-sourced AI algorithms, creating a diplomatic stalemate. The economic impact already includes a 9% tariff hike on all AI-related imports from China, affecting 1,200 companies.