What Changed
- The U.S. DHS announced procurement exclusion and removal orders targeting DeepSeek AI products across federal civilian agencies.
- MOFCOM rejected the U.S. orders, stating they overstretch national security concepts and violate international trade norms.
- China called for revoking restrictions via bilateral AI dialogue mechanisms while reserving the right to take necessary protective measures.
Chinese artificial intelligence developers, international technology suppliers, and cross-border commercial operators face heightened regulatory and trade tensions following recent actions by the U.S. Department of Homeland Security (DHS) and the subsequent response from China's Ministry of Commerce (MOFCOM). On October 19, the U.S. DHS announced a ban prohibiting U.S. federal civilian executive agencies from procuring products and services developed by Chinese AI firm DeepSeek and its affiliates. The order additionally mandates the complete removal of DeepSeek products and services from information systems across those agencies.
In official remarks released on October 20, a spokesperson for MOFCOM stated that China firmly deplores and rejects the U.S. DHS order. MOFCOM characterized the ban as a typical act of overstretching the concept of national security and abusing administrative measures to suppress Chinese companies. According to the ministry, the U.S. measure politicizes and instrumentalizes science, technology, economic, and trade issues under the guise of national security, disregarding consensus previously reached by the heads of state of both countries and disrupting normal commercial cooperation in AI.
MOFCOM emphasized that the Chinese government maintains equal focus on development and security, advocating for safe, controllable, and reliable AI under a people-centered framework. The spokesperson highlighted that China has enacted comprehensive legal frameworks, including the Cybersecurity Law and the Personal Information Protection Law of the People’s Republic of China, to safeguard cybersecurity and data privacy. Furthermore, Chinese AI enterprises remain committed to providing secure services in compliance with local laws wherever they operate.
China urged the United States to respect market principles, cease unjustified suppression, revoke discriminatory restrictions, and utilize the China-U.S. AI dialogue mechanism to enhance trust and manage differences. MOFCOM stated that China will closely monitor developments and take all necessary measures to firmly safeguard its legitimate rights and interests against actions causing substantive harm.
Who May Be Affected
Chinese AI enterprises (including DeepSeek and affiliates), U.S. federal civilian executive agencies, and cross-border technology vendors.
Cross-Border Context
Direct commercial and policy dispute between mainland China and the United States regarding government procurement bans and AI technology access.
What to check next
- Monitor potential retaliatory administrative or regulatory measures announced by Chinese authorities.
- Verify federal agency compliance timelines under the U.S. DHS order.
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.