China defends DeepSeek after US ban of its AI from government systems

China responded on Tuesday to a U.S. ban on the use of Chinese artificial intelligence startup DeepSeek's products by federal civilian agencies. China warned that it could take action in response, as the two countries compete to develop AI technology.

The U.S. Department of Homeland Security said federal civilian agencies should remove DeepSeek products from their IT systems. They must also remove products and services made by other companies that use DeepSeek technology. The department announced this in a notice made public on Monday.

George Chen, a partner and head of digital practice at Washington-based consulting firm The Asia Group, said the latest warnings show how deeply China and the U.S. distrust each other strategically. This is happening even as U.S. President Donald Trump and Chinese President Xi Jinping work hard to keep their personal relationship friendly and constructive.

The Homeland Security order, which dates back to late July, also stops civilian agencies from buying DeepSeek products and services.

DeepSeek's open-source AI models are widely available in countries including the United States, and most are free to use.

The notice published in the Federal Register says DeepSeek's models "present multiple threat vectors," meaning they could create several kinds of security risks. One concern is that DeepSeek's servers are in China. The order says Chinese authorities could potentially gain access to private company systems and sensitive U.S. data.

Asked about the U.S. ban in Beijing, Chinese Foreign Ministry spokesperson Mao Ning said China "will resolutely safeguard the legitimate rights and interests of Chinese companies."

"China consistently opposes the overstretching of the concept of national security," she told reporters.

China's Ministry of Commerce also said late Tuesday that it was "strongly dissatisfied and firmly opposed" to the U.S. decision. It said the U.S. had ignored the agreement reached between Xi and Trump and had failed to consider the wider state of economic and trade relations between China and the United States.

The ministry said the U.S. was trying to hold back and limit China's development by imposing unfair restrictions "under the guise of national security." It added: "China will closely monitor the situation and take all necessary measures to firmly defend its legitimate rights and interests."

DeepSeek did not immediately respond to a request for comment.

China and the United States have recently made some progress in working together on AI governance. This includes a U.S. proposal to create a system for reporting incidents related to national security. However, the two countries still disagree on many issues.

AI is expected to be discussed when Trump and Xi meet again in mid-November during the Asia-Pacific Economic Cooperation summit in Shenzhen, China. The two leaders last met in September, when Xi made a state visit to Washington.

Restrictions led by the United States still prevent China from accessing some of the world's most advanced AI chips and the machines used to make them.

The U.S. has also accused Chinese AI startups, including DeepSeek, of carrying out large-scale "distillation," or copying abilities from leading American AI models. Beijing has rejected these claims.

Last week, Beijing introduced its own proposals to limit exports of certain advanced AI models.