And they constantly publish state of the art LLM research (see DS4 context compaction and cache tech).
They have very capable tech giants. So while not being able to distill western models would probably have some impact, it's probably becoming lesser as time passes.
We might even see Western LLMs distilling Chinese models soon. If they aren't already to some extent.
A couple months ago when Anthropic was complaining about Chinese distillation, people found that Claude self-identified as "DeepSeek" when asked in Chinese:
https://x.com/stevibe/status/2026227392076018101
It's really a fiasco of massive hypocrisy at this point.
Many of the top AI researchers at western companies are from China, and many are returning.
If Anthropic had a super secret model that nobody has access to, I'm not sure why I should care about it since I can't access it.
More than a year ago, when Anthropic and OpenAI started to hide the reasoning bits from the output, a lot of people here on HN predicted that Chinese models days were numbered.
Fast forward to today, and models such as DeepSeek and MiMo are nothing short of excellent. I haven't used GLM or Qwen but heard very good things about them as well.
This "massive distillation" sounds a lot like anxiety about how companies from outside the US can develop very good models themselves.