Beijing, October 20, 2026 — China on Tuesday warned Washington over its ban on Chinese AI company DeepSeek, vowing to "resolutely safeguard the legitimate rights and interests of Chinese enterprises" after the US ordered federal civilian agencies to purge the startup's software from government systems.
Foreign Ministry spokesperson Mao Ning said Tuesday that Beijing opposes "overstretching the concept of national security and politicizing technology and trade issues," per an official briefing reported by TechCrunch.
The Department of Homeland Security published the directive on Monday: federal civilian agencies may no longer buy products and services developed by the Hangzhou-based startup, and must remove existing DeepSeek software from government IT systems. It also covers third-party products and services built using DeepSeek technology, though agencies can request exceptions for mission-critical work.
Why the US banned DeepSeek from federal systems
Washington's case rests on data: Homeland Security warned that DeepSeek's models "present multiple threat vectors," and that sensitive information from US government users could become accessible to Chinese authorities under Chinese law — since DeepSeek's servers sit in China, where Beijing's legal system gives the government broad powers over private companies' infrastructure.
The department warned that use of DeepSeek tools by government employees or vendors "may result in the transfer of sensitive data to (China)," according to AFP reporting. The order covers civilian agencies only — the department can't direct the military or the intelligence services. The Defense Department did not respond to an AFP request for comment.
This is not the first American crackdown on the Chinese startup. A law passed in December 2025 targeted DeepSeek's use in intelligence and national security systems. The latest order extends the same treatment across federal civilian agencies, covering both new purchases and software already installed.
How DeepSeek became a geopolitical flashpoint
DeepSeek's rise has been fast — and disruptive. The Hangzhou lab shook up the global AI industry in January 2025 with a low-cost, high-performance chatbot that challenged assumptions about American dominance. Its R1 reasoning model later triggered a sharp sell-off in Nvidia shares. The firm released a new model, V4, in April, and updated a faster, lighter version this month.
Washington accuses DeepSeek and other leading Chinese AI firms of absorbing the capabilities of American-built models. A September report from the US Cybersecurity and Infrastructure Security Agency named DeepSeek among six Chinese AI companies — alongside Alibaba and Moonshot AI — that the US says used large-scale model distillation, a technique that uses one model's outputs to train another. OpenAI told lawmakers it had seen suspected attempts by DeepSeek to distill its models; Anthropic said it had found unauthorized attempts by DeepSeek and other Chinese AI labs to collect outputs from its Claude system.
China's counter-moves
Beijing is not only pushing back with words: China is reportedly considering export restrictions on 23 AI-related technologies, including chip designs and certain advanced AI models, Bloomberg reported last week.
The dispute lands in a crowded diplomatic calendar. Despite their rivalry, China and the United States agreed in September to set up a "communication channel" for AI incidents. The issue is expected to resurface when the two countries' leaders meet next month at a summit in Shenzhen. (Related: Putin Proposed Trump-Xi Summit on Ukraine, WSJ Reports)
Why it matters
This fight is about far more than one chatbot. The DeepSeek ban is Washington's clearest signal yet that it treats AI models like telecom equipment and chips: as critical infrastructure where the supplier's nationality matters. By extending the order to third-party tools built on DeepSeek's models, the US is also policing its open-source ecosystem, forcing companies worldwide to think twice before building on Chinese AI foundations.
For Beijing, the stakes run the other way. DeepSeek has become a symbol of Chinese innovation under sanctions pressure, and the ban reads in China as containment. Mao Ning's pledge to "resolutely safeguard" Chinese companies hints at retaliation — possibly through the export curbs Bloomberg flagged. With China's economy leaning on exports and technology for growth (China Q3 GDP 2026 beat forecasts at 4.5%), Beijing has motive to answer in kind.
What happens next
Federal agencies now face the practical job of removing DeepSeek software — including third-party tools built on it — from their systems, with exceptions for mission-critical uses. Attention then turns to Beijing's promised response: whether Mao Ning's warning stays rhetorical or turns into export curbs on AI technology. The November summit in Shenzhen will test whether the two governments can keep their AI rivalry from spilling into a broader technology war.
Key takeaways
- The US ordered federal civilian agencies to stop buying and remove DeepSeek AI products, including third-party tools built on its models, citing national security and data risks.
- China responded Tuesday, accusing Washington of overstretching national security and politicizing technology, and vowed to defend its companies.
- The ban follows a December 2025 law targeting DeepSeek in intelligence systems and years of US accusations that Chinese AI labs distill American models.
- Beijing is reportedly weighing export restrictions on 23 AI-related technologies as a possible counter-move.
- The dispute will likely surface at the leaders' summit in Shenzhen next month.
FAQs
What exactly did the US ban?
Federal civilian agencies must stop buying DeepSeek's products and remove existing ones from government IT systems. The order also covers third-party software and services built using DeepSeek's technology, with narrow exceptions for mission-critical functions.
Why does the US say DeepSeek is a security risk?
Washington argues DeepSeek's servers are in China, where the law gives the government broad powers over private company infrastructure. Officials warned that use of the tools by government employees or vendors could transfer sensitive data to China.
How did China respond?
Spokesperson Mao Ning said Tuesday that Beijing opposes overstretching national security and politicizing technology, adding China "will resolutely safeguard the legitimate rights and interests of Chinese enterprises." Export restrictions on 23 AI technologies are also reportedly under consideration.
Is DeepSeek banned for everyone in the US?
No. The order covers federal civilian agencies only. A separate December 2025 law targets intelligence and national security systems, but Homeland Security can't direct the military or intelligence services, and consumers and private firms aren't affected.
Why is DeepSeek so controversial?
DeepSeek shook the AI industry in January 2025 with a low-cost, high-performance chatbot that challenged US dominance. Washington has since accused it and other Chinese AI firms of absorbing American model capabilities through model distillation — claims Beijing rejects.
What happens at the Shenzhen summit?
Leaders of the two countries are expected to meet in Shenzhen next month, where AI governance is likely to feature. The DeepSeek row will almost certainly be on the table, alongside the AI-incident communication channel both sides agreed to in September.
By GlobalDeskNews Staff
Sources
- TechCrunch — "US orders federal agencies to remove China's DeepSeek AI from their systems" (October 20, 2026): techcrunch.com
- AFP via NDTV — "US Bars Government Agencies From Using China's DeepSeek" (October 20, 2026): ndtv.com