Oh, I agree distillation isn't stealing "outright" as in it's not theft of 100% of the model. But there's a reason they're doing it. I didn't say anything about Chinese labs innovating -- obviously they are.
What accounts for the difference between your attitude that distillation is no big deal, "common practice," yet Anthropic sees as it as a huge threat?
I never said that "it's no big deal". It's a clear-cut violation of ToS, and Anthropic are within their rights to care about that.