• By Vanshika Choudhary
• March 18, 2025

The latest decision of the U.S. Commerce Department to prohibit DeepSeek, the Chinese artificial intelligence model, in government devices has blown up the already boiling technological and geopolitical tension between the U.S. and China. This bill is one of the many measures taken by the United States in defiance of China’s paradigm shift over data and privacy and national security threats, and Western scrutiny of Chinese technology in markets in the West. What follows is a detailed discussion of the ban, its implications, and the broad context surrounding this latest development.

What is DeepSeek?

DeepSeek AI is a self-building AI model from China and has captured world attention for advances that are worth little in comparison to similar works by the West. Earlier in the year, a Chinese start-up introduced DeepSeek, and the announcement insisted that R1 performed at par with the products of the likes of OpenAI and Google in comparison. This indicates that the new model is a highly competitive candidate for a place in the global AI market. The app has become one of the most downloaded AI tools in the United States in record time, much to the delight of users and alarmed policymakers.

It has still been criticized for its data policies and concerns that DeepSeek keeps user information in China. This has raised fears among cybersecurity professionals concerning the potential access of sensitive information by the Chinese Communist Party (CCP). Such fears are a significant push behind calls to regulate the app.

The Ban: Key Details

The internal directive issued recently by the U.S. Commerce Department prohibits employees from downloading, accessing, or using any applications or websites related to DeepSeek on government-furnished equipment (GFE). It was sent out in departmental emails, reinforcing that the government’s information systems are protected against external threats.

While the specific range of this ban across federal agencies is unknown, it adds up with the general trend in legislative attempts to reduce the use of Chinese technologies within U.S. governmental networks.

Legislative Actions as Well as State-Level Bans

It is one of the appeals by the lawmakers in such a campaign to minimize DeepSeek’s influence in the country. In February 2025, Josh Gottheimer (D-NY) and Darin LaHood (R-IL) introduced a bipartisan bill entitled the “No DeepSeek on Government Devices Act.” The legislation proposes prohibiting federal employees from using DeepSeek on government-owned devices because of risks such as surveillance or data breaches.

Similarly, such actions concerning DeepSeek have already been adopted in several states, such as Virginia, Texas, and New York. In addition to that, a coalition of 21 state attorneys general pressed Congress for a national ban.

Security Concerns: Data Privacy Under Threat

Perhaps the most important issue spurring restrictions on DeepSeek has to do with data privacy: Independent investigations have shown that data collected or otherwise uploaded to DeepSeek servers uses a mix of private and public servers.

Toronto’s cybersecurity firm Feroot Security has investigated DeepSeek activities and found code hidden in the app that could transmit sensitive user information—contracts, financial records, and proprietary documents—to Chinese servers. These revelations raised fears that the CCP would exploit this data for espionage or economic purposes.

Economic Effects

DeepSeek’s arrival has had its effects not only on military and defense issues but also on the economic front. Low-priced AI models of DeepSeek rocked equity markets worldwide in January 2025 as investors feared the company’s ability to disrupt U.S.-led advances in AI technology. Offering the same performance but at a lower price, DeepSeek has emerged as a threat to American tech giants such as OpenAI and Alphabet.

This argument criticizing DeepSeek would add another layer to the already entangled issue of Chinese technology and U.S. concerns. Policymakers fear that its spread will compromise the United’s status as an innovator and also make the Chinese system richer in the field of technology.

Similarities to the TikTok Situation

DeepSeek is under attack in close parallel to that which existed against an earlier effort to prevent TikTok from operating in the United States. Like TikTok, DeepSeek seems to be drawing accusations of being a national security threat because of its Chinese connection and use of data. In 2022, Congress banned TikTok from government devices, setting the tone for greater restrictions on foreign applications.

These very similar cases indicate a general trend toward an increasing renunciation of Chinese technology among Western users. In fact, both cases indicate that the population is growing more and more convinced that data privacy and national security reasons can induce stricter regulations against foreign technology.

Geopolitical Background

The ban on DeepSeek is part of broader geopolitical contention between the United States and China to engage democratic superpowers in the new emerging technologies, such as AI. Intellectual property theft, the issues with cybersecurity, and market access have become the current flashpoints of their relationship.

Continuously, from creating trade wars to sanctions imposed against Chinese tech companies like Huawei, the U.S. has not relented in trying to limit China’s influence in areas that are important industries. Restrictions set up against DeepSeek sit as part of this larger ploy, guarding the American innovation field while countering Beijing with all its perceived threats.

Criticism and Counterarguments

Many support the enactment of the prohibition against DeepSeek, but there are those who argue that such measures might restrain innovation and limit consumer choices. Restricting foreign technologies may pinch off the U.S. in some ways, making it less competitive in international markets. 

Some question whether the prohibition of single apps such as DeepSeek addresses the actual underlying causes of vulnerabilities in cybersecurity. A completely different tack—focusing on solidifying data protection laws and improving cybersecurity infrastructure—is deemed more likely to prove effective than singling out certain companies. Check out our latest blog post on 14 Mobile App Development Trends You Can’t Ignore in 2025

Future Implications

Potential Challenges Regulatory Precedents Actions taken against DeepSeek may serve as a touchstone for how future models will be treated by government interest in foreign technologies. More countries could go with the route of banning AI models connected to countries with conflicting security interests, thus setting the rule against technology acceptance for national security aims. 

Global AI Standards The hullabaloo around DeepSeek points to how much there is a dire immediate need for international treaties on AI governance. Analysts assess that countries will advocate for standard rules on AI model operations as the pressures of data privacy and security augment. Conducting such efforts in harmony would greatly alleviate risk and ensure the ethical development of AI technologies. The standards must comprise transparency, accountability, and compliance with privacy laws. Only these will instill trust in AI technologies on a worldwide scale. 

Innovation Vs Security Concerns How should policymakers address the tension between national security prerogatives and innovation? For instance, restricting foreign AI models like DeepSeek to protect sensitive data from potential misuse also limits avenues for technological advancement and access to tools. By clearly promoting domestic innovation and energyfully resisting foreign interference, debaters have identified this tension as chronic, suggesting it will shape the discourse on emerging technologies for many years to come. 

Conclusion

 The U.S. Commerce Department’s statement prohibiting the use of DeepSeek under Chinese AI in government installations is an illustration of multiple dimensions of the rift between technology and national security. Proponents say these measures protect sensitive data from an enemy’s eye, while skeptics warn that overregulation might hinder progress in the intelligence field.

Perhaps one main consensus in different approaches to the evolution of debates surrounding AI governance is that technologies like DeepSeek will continue to place privacy, security, Contact Us, and check competition into the spotlight in the digital arena. Whether by legislation or through international treaties, striking a balance between the opposing demands will shape the way forward to secure and innovative tomorrows.