American startups are appealing to the Trump administration not to ban Chinese-made OpenWaite AI.

Approximately 200 AI-related companies, including startups, sent an open letter to the Donald Trump administration stating that blocking access to China's openweight AI models could undermine the competitiveness of the next generation of startups.
LTA_Open_Weight_AI_Sign-On_Letter_7_22_26 - lta-open-weight-ai-letter-7-22-26.pdf
(PDF file)
Startup founders urge Trump not to shut off Chinese open weight AI - POLITICO
https://www.politico.com/news/2026/07/22/startup-founders-urge-trump-not-to-shut-off-chinese-open-weight-ai-01008992
China is developing AI models that rival or surpass the performance of American-made models, deploying them at low cost, or even making the models themselves available for free.
The Trump administration is reportedly attempting to regulate some Chinese-made AI models due to concerns about potential security risks associated with AI developed in China and the potential for American AI to become obsolete.
Trump administration reconsiders de facto ban on foreign-made open-source AI models due to concerns over China's rise - GIGAZINE

Contrary to the Trump administration's wishes, some AI companies are calling for a ban on regulation.
On July 22, 2026, the ' Little Tech Association ,' an organization with approximately 200 participating companies including Proton and Y Combinator, was launched and sent letters to President Trump, Commerce Secretary Howard Ratnick, and other administration officials.
The Little Tech Association pointed out that 'American leadership requires not only world-class American-made openweight models, but also continued access to open models available worldwide.' They stated that 'depriving American startups of access to models available overseas stifles competition, solidifies the position of established large corporations, and creates something like a tax on intelligence. As a result, startup costs increase, options narrow, and the gap widens as overseas competitors continue to have access to models.' They also pointed out that prohibiting Americans from downloading Chinese models would not stop their spread and would only weaken American startups.
For these reasons, I argued that targeted safety measures should be adopted rather than a comprehensive ban.

The letter specifically names Chinese-made open-top models such as the ' Qwen3.8 ' and ' Kimi K3, ' and argues for the need for the United States to have access to these models.
Regarding Kimi K3, the Trump administration suspects it may be made by distilling Anthropic's Claude Fable, and there is concern that it may be subject to regulation.
A White House official stated that the high-performance Chinese AI 'Kimi K3' was created by distilling Claude Fable - GIGAZINE

Harry Godfrey, executive director of the Little Tech Association, said, 'The question is, what is the least impactful way to address legitimate national security concerns without raising costs, restricting access, or hindering American innovation?'
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