UPDATE: AI Safety, Model Distillation and U.S.-China Talks

  • September 30, 2026

By: John N. Anastasi

This is an update to an earlier IP Advisory published September 23, 2026.

Artificial Intelligence (AI) or, as the White House now describes it, “Super Intelligence” or “SI”, and the related intellectual property issues highlighted in our recent IP Advisory, were at the forefront of the recent talks between U.S. President Donald Trump and Chinese President Xi Jinping, resulting in several important developments.

The United States and China have now established a formal Super Intelligence (SI) Dialogue, with another exchange expected by November, and they have agreed to create a bilateral communication channel for AI/SI-related incidents. China’s official account similarly emphasizes continued dialogue on AI/SI risks and benefits, preventing misuse and abuse, and maintaining human control over advanced AI/SI systems.

While these steps are meaningful, they do not resolve some of the more difficult legal and practical questions, including:

  • How quickly can an incident channel function when an AI-enabled cyber or security event may unfold in minutes or seconds?
  • How will the two countries address allegations involving unauthorized model distillation and extraction of proprietary AI capabilities?
  • What verification and enforcement mechanisms will accompany future AI agreements?
  • Domestically, how should policymakers establish appropriate AI safety guardrails without shifting responsibility away from the companies developing these systems, or unintentionally creating regulatory barriers that favor the large incumbents

For intellectual property owners, the underlying lessons remain the same: international dialogue can help manage risk, but it is not a substitute for enforceable IP rights, access controls, contractual protections, comprehensive monitoring, and appropriate technical safeguards.

L&A will continue monitoring these developments, including U.S.–China AI/SI discussions, and their implications for intellectual property protection, AI security, corporate responsibility, and technology law.

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