The Trump administration has barred Chinese AI startup DeepSeek from civilian U.S. government agencies, with the Department of Homeland Security publishing an order Monday that requires federal civilian agencies to remove DeepSeek-related technology from their IT systems and forbids them from buying the company's products and services.

The ban covers agency IT systems, including third-party offerings built using DeepSeek's technology. It reaches departments such as Treasury, State and Justice, but not the Department of Defense. The order was originally issued on July 24.

DHS said DeepSeek's models "present multiple threat vectors," warning that sensitive government data could be transferred to China and that the models may carry malware or other vulnerabilities. The agency pointed to open-source research flagging critical flaws in DeepSeek's iOS app.

Agencies can seek exceptions, including compliance delays, by filing a written justification with DHS within 60 days of the order's issuance.

The step lands amid widening Washington-Beijing tensions over artificial intelligence. Asked about the move, Chinese foreign ministry spokesperson Mao Ning told Reuters that China "consistently opposes the over-generalization of national security as well as the politicization of science, technology and trade issues," adding that Beijing would safeguard the rights and interests of its companies.

Other restrictions have piled up since DeepSeek emerged in early 2025: Congress limited its use in intelligence community systems in December 2025, Commerce Department bureaus told staff in March that it was banned on government devices, and the Defense Information Systems Agency moved to block access to its models in January 2025. DeepSeek and China's Embassy in the U.K. did not immediately respond to CNBC's request for comment.

Source: CNBC