Geostrategic Daily

CSIS (Center for Strategic and International Studies) · 9 September 2026

Distillation Under TRUST: The Case for a U.S.-India Trusted AI Model Distillation and Diffusion Corridor

The report argues that a growing number of U.S. and Indian companies are deploying Chinese open-weight models, and that Washington is weighing punitive measures against Chinese labs. It proposes establishing a U.S.-India corridor under the TRUST initiative to legally distill open-weight models from frontier U.S. models, while acknowledging challenges such as intellectual property and export controls.

Why it matters: This matters for U.S.-China technology competition, as the report contends that punitive measures will not eliminate demand for capable, cheap open-weight models or prevent Chinese models' adoption across the Global South.

sanctions export controls · great power rivalry · green tech supply chain

Record

Source
CSIS (Center for Strategic and International Studies) (tier 1)
Published
9 September 2026
Link
https://www.csis.org/analysis/distillation-under-trust-case-us-india-trusted-ai-model-distillation-and-diffusion
Content depth
full
Regions
americas, asia-pacific
Subregions
china, south-asia, us
Actors
US, India, China, Moonshot AI, Anthropic, OpenAI
Edition
2026-09-10

Grounding

Verbatim spans from the source text that support the summary above.

A growing number of U.S. and Indian companies are deploying Chinese open-weight models
Washington is weighing punitive measures on Chinese labs accused of large-scale distillation
establishing a corridor for U.S. and Indian labs to legally distill open-weight models from frontier U.S. models