Key points

On October 20, 2026, the U.S. Department of Homeland Security (DHS) announced in the Federal Register an order excluding products and services from the Chinese AI company DeepSeek from procurement by federal civilian agencies and requiring removal of products already in use. The order, dated July 24, 2026, highlights multiple security risks, including DeepSeek's servers being located in China, collection of personal information, transfer of sensitive data to China, and potential malware contamination of models. The Chinese government has protested the measure as an excessive application of national security concepts. [1] [2]

Overview of DHS Order Excluding DeepSeek Products

The U.S. Department of Homeland Security (DHS) issued an order dated July 24, 2026, excluding products and services from the Chinese AI company DeepSeek from procurement by federal civilian agencies and mandating removal of products currently in use. This order was published in the Federal Register on October 20, 2026, bearing the signature of the Secretary of Homeland Security. The legal basis for the order is the Federal Acquisition Supply Chain Security Act (FASCSA) of 2018, and it was issued following recommendations from the Federal Acquisition Security Council and review of related evidence. [1] [3]

The order applies to information technology systems and procurement within federal civilian agencies, excluding the military and intelligence agencies. It requires exclusion of DeepSeek products from procurement and removal of products currently in use. Requests for exceptions must be submitted in writing within 60 days of the order's issuance and must include justification based on mission necessity, national interest, and risk mitigation measures. The Cybersecurity and Infrastructure Security Agency (CISA) cybersecurity division handles inquiries regarding the order. [1]

Security Concerns and Scope of Exclusion for DeepSeek Products

DeepSeek's servers are located within China, and under Chinese law, the government has broad access rights to corporate infrastructure, which is considered a security risk. The U.S. Department of Homeland Security warns that if U.S. government employees or vendors use DeepSeek's AI tools, sensitive data could be transferred to China. This raises concerns that important information about U.S. personal data and government plans could be exposed to Chinese authorities. [1]

The exclusion and removal requirements extend beyond DeepSeek itself and its affiliated companies to include third-party products and services developed using DeepSeek's technology or models. Federal civilian agencies are required to remove these products and services from their information technology systems, and the order also mandates their removal from approved procurement lists and online marketplaces. [1]

Chinese Government's Response and DeepSeek's Corporate Background

The Chinese government has strongly opposed the U.S. exclusion of DeepSeek products, criticizing it as an excessive application of national security concepts. A spokesperson for the Chinese Ministry of Foreign Affairs expressed opposition to politicizing issues related to science, technology, and trade, and pledged to protect the rights and interests of Chinese companies. [2]

DeepSeek is one of China's leading AI companies. In January 2025, it announced a low-cost, high-performance chatbot, followed by the release of a new model, V4, in April 2026, and an updated faster, lighter version in October 2026. The U.S. accuses Chinese AI companies, including DeepSeek, of systematically stealing technology from advanced U.S. models. In September 2026, the two countries agreed to establish a "communication channel" for AI-related incidents, and this issue is expected to be on the agenda at the upcoming leaders' summit in Shenzhen, China, next month. [2]