China Urges Washington to Lift DeepSeek Ban on Civilian Government Procurement
Key Facts
China called on the United States to lift restrictions on DeepSeek products and services at civilian federal agencies, objecting to the use of national security considerations in technology and trade issues. The U.S. order prohibits those agencies from buying information technology products and services developed by the Chinese company and its affiliates, according to a Department of Homeland Security notice published in the Federal Register. It also requires the removal of products from the company and its affiliates from the information technology systems of covered civilian agencies. The removal requirement extends to products and services developed by third parties using DeepSeek applications, bringing software from other vendors within the scope of the measure. According to the Associated Press, the Department of Homeland Security order dates to late July, before the notice was made public.
The Department of Homeland Security issued the order under powers granted by the Federal Acquisition Supply Chain Security Act of 2018. The department said in the notice that it had reviewed a recommendation from the Federal Acquisition Security Council and the associated evidence before taking action. The concerns outlined in the notice center on the possibility of Chinese authorities gaining access to private companies' infrastructure and sensitive U.S. data, according to the Associated Press. In response, Chinese Foreign Ministry spokesperson Mao Ning said her country "consistently opposes broadening the concept of national security and politicizing technology and trade issues." Pledging to defend Chinese companies against the restrictions, she added that Beijing "will resolutely safeguard the legitimate rights and interests of Chinese companies."
In a separate statement, China's Commerce Ministry accused Washington of disregarding important understandings reached by the two countries' presidents, adding a diplomatic dimension to Beijing's objection to the DeepSeek measure. The ministry called in its statement for the removal of what it described as "discriminatory restrictions," directly requesting the withdrawal of the relevant U.S. measures. It also urged the use of the China-U.S. dialogue mechanism on artificial intelligence, proposing bilateral engagement as a way to address the dispute. Australia has previously imposed government restrictions on the company, requiring relevant agencies to prevent the use or installation of DeepSeek products, applications and web services. The Australian directive also required the removal of existing instances from all government systems and devices, according to Australia's Protective Security Policy Framework.
DeepSeek's rise had been linked to an earlier sharp move in chipmakers' shares, with a Reuters report published in January reporting that Nvidia shares fell 17% to $118.58. That move occurred during the Monday session covered by the January report, against the backdrop of the Chinese company's advances in artificial intelligence. In a regulatory initiative separate from the U.S. ban, China released a draft amendment to its list of technologies prohibited or restricted from export. The draft proposes adding 40 technologies across artificial intelligence, biomedicine and photovoltaics, according to China's Commerce Ministry. The proposed additions comprise 14 technologies prohibited from export and 26 technologies subject to export restrictions, under the amendment put forward for public consultation.
China's Commerce Ministry said the amendment to the technology list "does not target any specific country, region or entity," clarifying the scope of the proposed measure. Regarding the availability of technology outside the country, the ministry said local deployment overseas of restricted technology falls within the scope of technology export controls. The Chinese clarification thus addresses the transfer and local deployment of restricted technology outside China under export controls. Transitional registration covers technology exports that have already begun but have yet to be completed, according to an announcement by the ministries of commerce and science and technology. Such ongoing exports also fall within the scope of registration, alongside the technologies covered by the draft amendment to the list.
On the diplomatic front, China's Commerce Ministry continues to call for the use of the artificial intelligence dialogue mechanism between Beijing and Washington to address the current dispute. That call accompanies its demand for the removal of U.S. restrictions and its accusation that Washington has disregarded understandings reached by the two countries' presidents. On China's regulatory track, the draft amendment to the technology export list is subject to a public comment period set by the ministries of commerce and science and technology. Comments opened on 16 October 2026, allowing feedback on the proposed additions to the list of prohibited or restricted technologies. The consultation period is scheduled to end on 15 November 2026, according to the deadline in the Chinese announcement.