Specifically, the committee recommended that the State Department assess whether the distillation attacks violate laws like the Economic Espionage Act and the Computer Fraud and Abuse Act. They also want “adversarial distillation” clearly defined and officially categorized as a controlled technology transfer, which would make it easier to restrict fraudulent Chinese access to models. If such steps were taken, the US could prosecute bad actors and impose heavy financial penalties that might dissuade Chinese firms from treating “serious violations as a tolerable cost of doing business,” the committee’s report said. China slams accusations as “pure slander” Kratsios’ memo threatening a crackdown comes ahead of Donald Trump’s highly anticipated meeting with China’s president Xi Jinping next month.…