If the Chinese models couldn't Distill from the larger models they'd be at gpt2 or 3 levels
Literally not a single one of these AI companies, regardless of where they are in the world has any right to complain about someone copying their work.
> OpenAI’s counsel asked Musk whether xAI has ever “distilled” technology from OpenAI.
> Musk: “Generally AI companies distill other AI companies.”
> “Is that a yes?” Savitt asked.
> Musk: “Partly.”
From https://www.interconnects.ai/p/the-distillation-panic which is worth reading in full.