US Bans DeepSeek AI From Civilian Federal Agency IT Systems

China’s commerce ministry on Tuesday criticized a US government order banning Chinese AI model DeepSeek from federal agency IT systems.

Beijing called for an immediate reversal of the restrictive measures, stating the ban harmed Chinese firms' interests and disregarded understandings reached by the countries’ leaders. The ministry expressed strong dissatisfaction and firm opposition to the order. The US Homeland Security Department (DHS) on Monday ordered the removal of DeepSeek products and third-party services using the Chinese AI model from civilian federal agency IT systems.

DHS also barred agencies from acquiring DeepSeek products or third-party services developed using the model. DHS Secretary Markwayne Mullin signed the order on July 24, but it became public on Monday. The DHS stated DeepSeek models pose “multiple threat vectors” and raised concerns that their use could result in the transfer of sensitive data to China if used by US government employees or vendors.

DeepSeek's headquarters and servers are located in Hangzhou, China. The PRC legal system permits extensive authority to government cyber and intelligence functions to access private company infrastructure, according to the DHS order. DeepSeek's AI technology processes user-submitted prompts and its hosted systems can collect personally identifiable information and track users' digital fingerprints. The order covers software developed by DeepSeek, its affiliates, and outside vendors incorporating DeepSeek technology.

The DHS order provides agencies a process for requesting exceptions, with DHS retaining final say. The Department of Homeland Security can issue direction to civilian agencies, but not the military or intelligence services. China hopes the US will implement the consensus reached by the two leaders and utilize the China-US artificial intelligence dialogue mechanism. The United States has accused DeepSeek and other top Chinese AI firms of systematically stealing capabilities of cutting-edge models developed by American rivals.

China and the United States agreed in September to establish a “communication channel” for AI incidents. The topic is expected to arise when the countries’ leaders meet next month at a summit in Shenzhen, China.