China charges alleged scam kingpin Chen Zhi with intentional injury; US AI firms accused of using Chinese data.
Scott BessentChen ZhiPrince Group

China charges alleged scam kingpin Chen Zhi with intentional injury; US AI firms accused of using Chinese data.

China has charged alleged scam kingpin Chen Zhi with intentional injury, potentially leading to the death penalty, while US AI firms face accusations of using Chinese data for model training, prompting Beijing to warn against what it calls 'AI hegemony'.

TRT World TRT World+2 sources27 July 2026 · 13:44 UTC
CuriousCats Full Story

Chen Zhi, extradited from Cambodia, faces new charges including intentional injury, which could lead to the death penalty. Previously, he was linked to a vast online scam network through his conglomerate, Prince Group.18

Chinese prosecutors dropped a charge of concealing criminal proceeds but added copyright infringement and intentional injury charges. Under Chinese law, such actions can result in a minimum of 10 years in prison or execution.3

Meanwhile, tensions rise as Beijing accuses US AI firms of using Chinese data for model training, labeling the US response as 'AI hegemony'. The Chinese commerce ministry stated that many American companies have distilled Chinese models during their research and development processes.6

In response to US threats of sanctions, China vowed to protect its rights and interests, asserting that the US accusations lack factual basis and reflect double standards. Nearly 200 US startups have urged the government to maintain access to Chinese open-source AI models, warning that restrictions could harm US competitiveness.10

Key Insight
“Chen Zhi, facing charges that could lead to the death penalty, was linked to a major online scam network. Meanwhile, nearly 200 US startups are urging the government to avoid restrictions on Chinese AI models, arguing that such actions would harm US competitiveness.”
CuriousCats studied:
1
TRT WorldTRT World
“Extradited from Cambodia six months ago, Chen faces fresh count that could lead to the death penalty”
TRT World →
2
The Straits TimesThe Straits Times
“Beijing accused US artificial intelligence companies on July 27 of using Chinese examples to train their models, days after Washington.”
The Straits Times →
3
ReutersReuters
“China urged the United States on Monday to stop politicizing technology and trade issues after some senior US officials reportedly said they were considering investigating and sanctioning Chinese artificial intelligence companies over alleged model distillation, according to the Ministry of Commerce.”
Reuters →
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