# US threatens sanctions against Chinese AI models over IP theft

_Tuesday, July 21, 2026 at 8:00 AM EDT · Power · Latest · Tier 2 — Notable_

![US threatens sanctions against Chinese AI models over IP theft — Primary](https://gizmodo.com/app/uploads/2026/07/GettyImages-2285483006-1200x675.jpg)

U.S. Treasury Secretary Scott Bessent said in an interview with Fox Business on Tuesday that Chinese open-source AI models should expect increased scrutiny from American authorities over IP theft concerns.

He stated that the administration supports open source models but does not support IP theft and has the ability to sanction overseas models found stealing from U.S. companies. Bessent added that watermarks of American LLMs were found on many Chinese AI offerings and that the administration would look into the matter in the coming days or weeks.

## Sources

- [Gizmodo](https://gizmodo.com/us-treasury-chief-threatens-sanctions-on-chinese-ai-labs-over-ip-theft-concerns-2000788553)

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Canonical: https://techandbusiness.org/newswire/5LUqHE17MS-a-0VrtQFCkh
Retrieved: 2026-07-23T04:42:14.826Z
Publisher: Tech & Business (techandbusiness.org)