DHS Orders Federal Agencies to Remove DeepSeek AI Products, China Protests
The U.S. Department of Homeland Security has directed federal civilian agencies to strip DeepSeek and any third-party products built on its technology from their IT systems, according to a notice dating from late July that was made public this week. The order also bars agencies from procuring DeepSeek products going forward, citing concerns that the Chinese company's servers could expose sensitive U.S. data to Chinese authorities. Beijing responded through Foreign Ministry spokesperson Mao Ning, who said China would defend its companies' rights and accused Washington of politicizing technology issues under the guise of national security.
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The ban signals how deeply U.S.-China tensions over AI have moved from trade and chips into software and data access concerns, even for freely available open-source models. The timing is notable given that Presidents Trump and Xi are scheduled to meet in Shenzhen in November, where AI issues are expected to be discussed, suggesting the dispute could color those talks. It also illustrates the broader challenge facing Chinese AI firms like DeepSeek, which have gained global users despite growing government restrictions tied to data sovereignty fears.
- DHS's July order bars federal civilian agencies from using or procuring DeepSeek AI products and derivatives.
- The ban cites risks that DeepSeek's China-based servers could allow government access to sensitive U.S. data.
- China's Foreign Ministry called the move an overreach of national security concerns, ahead of a planned Trump-Xi summit in November.
Source: fastcompany.com, 2026-10-20
Published there as: “U.S. bans AI startup DeepSeek because of ‘threat vectors’ and China responds”
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