China urged the US to stop "smearing and sanction threats" against Chinese AI firms and said it will take necessary measures against US actions that harm China's interests, the Chinese commerce ministry said in a statement on Monday. "Many US AI companies have distilled Chinese models during research, development, and training," the Chinese ministry said. The ministry also expressed firm opposition to US 301 tariffs imposed on Chinese goods over alleged forced labour and urged Washington to "correct wrong practice" and cancel relevant unilateral tariff measures. The ministry said China is willing to continue dialogue with the US based on mutual respect, equality and mutual benefit but warned it reserves the right to take all necessary measures while it assesses US actions.