The White House has escalated tensions with China by threatening sanctions against the nation following allegations that a Chinese AI startup, Moonshot, stole proprietary technology from US company Anthropic.

Treasury Secretary Scott Bessent warned that claims of intellectual property theft could lead to retaliatory measures, including new trade levies on Beijing.

The dispute centers around Moonshot's alleged extraction of trade secrets from Anthropic, which has raised concerns about the security of advanced AI research.

While the White House has not confirmed specific details of the alleged breach, the move underscores growing geopolitical friction over technology transfer and intellectual property rights.

Analysts suggest this could mark a significant shift in US-China relations, with implications for global tech innovation and international trade policies.The situation highlights the increasing importance of AI as a strategic asset, prompting calls for stronger protections against industrial espionage.However, China has consistently denied any wrongdoing, emphasizing its commitment to technological self-reliance.This incident adds to a series of recent diplomatic clashes between the two powers, reflecting broader competition in emerging technologies.