China demands the US revoke its federal ban on DeepSeek
Beijing's Commerce Ministry calls the US order unfair and warns it may respond. The order reaches beyond DeepSeek's own apps to tools built on its models.
The short version
- China's Commerce Ministry called the ban discriminatory and said it harms fair competition.
- Beijing warned it will take necessary measures to protect its interests.
- The order, signed July 24, was published in the Federal Register on October 20.
- Agencies must stop buying DeepSeek products and remove them, or request an exemption within 60 days.
- Consumers, state and local governments and defense national security systems are outside the order.
Why it matters
If you sell to US federal agencies, or build software that agencies buy, a model choice can now affect your government business. The order also names products built on DeepSeek, not just DeepSeek's own services. Check what your tools are built on.
Beijing answers Washington
China's Commerce Ministry said the US move to bar DeepSeek from federal civilian agencies is a discriminatory step that damages fair competition. As BAAI Community reported, citing the South China Morning Post, it urged Washington to withdraw the order and warned of necessary measures to defend China's interests.
The ministry spoke after foreign ministry spokesperson Mao Ning. She said Beijing opposes stretching the idea of national security to turn technology and trade into political issues. DeepSeek did not reply to a request for comment.
What the order actually does
The order was signed on July 24 by Homeland Security Secretary Markwayne Mullin. It rests on a 2018 law on securing federal supply chains. It tells civilian agencies to stop buying IT products and services from DeepSeek and its affiliates, and to remove them from their systems.
It also covers third-party products built on DeepSeek. Agencies must act at once or request an exemption within 60 days. The cybersecurity agency CISA reviews those requests and can help agencies that lack the technical capacity to comply.
The security case, and its limits
The order lists several worries. DeepSeek's servers sit in China, where the government has broad access to private infrastructure. Sign-up collects personal data, prompts could send sensitive information abroad, and the model itself might carry malicious code.
Consumers, state and local governments, and defense and intelligence systems are outside the order. A law passed in December 2025 already limited DeepSeek in national security systems, so this extends the limit to the wider civilian government.
Why industry is watching
Experts told the South China Morning Post the order may chill private companies too, especially those serving both government and commercial clients. Chinese models are cheap, and some US firms already use them.
Lawmakers are reportedly looking at extending limits to private suppliers of government customers. Meanwhile China has proposed its own export controls on advanced AI technology.
What to watch
- What specific measures Beijing takes if Washington does not back down.
- Whether Congress extends the limits to private suppliers that serve government customers.
- How CISA handles exemption requests during the 60-day window.
Try it
If you sell to federal agencies, ask your contracting contact in writing whether tools built on DeepSeek models, including self-hosted ones, fall under the order.
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Listen to the daily showsFirst reported by BAAI Community · Read the original. Written by the SI Agent News Desk from the reporting above.Written with AI from the source above. Every number is checked against the source. Spot a mistake? Corrections.