Nothing has been decided yet, and the ministries involved have made no official comment, but officials have gone as far as sketching options—including a bar on public release or a limit to domestic use only.
Closing access would mean surrendering the very lever that has driven China's rise. A trailing player doesn't abandon its biggest advantage unless the concern is national security. In that sense, Beijing would be following Washington, which has already restricted Anthropic's Mythos and OpenAI's GPT-5.6 over concerns about the models' ability to find software vulnerabilities.
Late last month, Z.ai released GLM 5.2, which it claimed had matched Mythos' ability to spot bugs. Once a model’s weights are published online, they are impossible to recall or add safeguards, which presents additional security challenges compared with proprietary models. It also means any forthcoming restrictions would only impact future models.
“Distillation,” or using the outputs of a smarter AI model to improve the performance of a weaker one, has become a point of controversy in the AI race. Chinese AI models trail America’s best by roughly seven months on key benchmarks. To catch up, Anthropic and others say Chinese labs are distilling their models—a violation of their terms. Anthropic published a report in February claiming other Chinese firms DeepSeek, Moonshot, and MiniMax generated 16 million exchanges with Claude through approximately 24,000 fraudulent accounts. In June, Anthropic reportedly sent a letter to U.S. officials accusing Alibaba of “brazenly” attempting to distill Claude’s capabilities. The hidden code that rattled Alibaba was built to help catch exactly this.
Anthropic has argued since February that no single firm can solve this—hence its lobbying for a coordinated front of industry, cloud providers, and government. With Washington already deciding who may use Claude Mythos and OpenAI’s GPT-5.6, that front no longer looks far-fetched.
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