The U.S. has ordered federal civilian agencies to stop using and remove services and products developed by the Chinese AI startup DeepSeek, citing national security concerns. The order covers both DeepSeek’s products and third-party services built using its technology, with agencies able to request exceptions.

The Department of Homeland Security raised concerns about DeepSeek’s handling of user data, warning that sensitive information from U.S. government users could potentially be accessible to Chinese authorities under Chinese law. This move comes amid intensifying tech competition in AI between the U.S. and China, with DeepSeek challenging U.S. rivals like OpenAI and Meta with low-cost, open-source models.

The U.S. has already passed a law in December 2025 targeting DeepSeek’s use in intelligence’s national security systems, and the latest order extends these restrictions to federal civilian agencies, covering both new purchases and existing IT systems.

China has pushed back against the U.S. move, with the Foreign Ministry spokesperson stating that Beijing opposes “overstretching the concept of national security and politicizing technology and trade issues.” The spokesperson added that China will resolutely safeguard the legitimate rights and interests of Chinese enterprises.

Meanwhile, China is reportedly considering export restrictions on 23 AI-related technologies, including chip designs and certain advanced AI models, to address security and misuse risks.