Michael Sobolik and Gordon Chang examine how Chinese AI company Moonshot bypassed US export controls by "distilling" technology from Anthropic's Claude Opus model to train its own system, Kimi K3. This intellectual property theft threatens American marke

Michael Sobolik and  Gordon Chang examine how Chinese AI company Moonshot bypassed US export controls by "distilling" technology from Anthropic's Claude Opus model to train its own system, Kimi K3. This intellectual property theft threatens American market dominance and national security. Sobolik recommends three policy actions: imposing crushing financial sanctions on violating Chinese firms, closing export control loopholes related to remote cloud access, and banning open CCP models in the United States. He warns that American tech companies prioritizing short-term profits over security risk losing the AI race, mirroring historical patterns of Chinese piracy. (9)