China’s Ministry of Commerce urged Washington to withdraw U.S. restrictions on DeepSeek in federal civilian agencies on October 20, 2026, and proposed using the China–U.S. AI dialogue mechanism to build trust and manage differences. The ministry also said the restrictions harmed Chinese companies and disrupted normal commercial cooperation in AI.
The ministry argued that the U.S. order disregarded important consensus reached by the two countries’ leaders. It called the restrictions discriminatory and said Washington was using national security as a reason to restrict Chinese AI companies.
The order applies to federal civilian agency procurement and IT
The Department of Homeland Security’s order excludes DeepSeek and affiliate products and services from federal civilian agency procurements. It also directs agencies to remove DeepSeek and affiliate products, along with third-party products and services developed using DeepSeek implementations, from civilian agency IT systems. The order behind the dispute was covered in NeoTeo’s earlier report on the DHS notice.
China proposes dialogue and says it will monitor developments
China’s Ministry of Commerce urged the two sides to use the China–U.S. AI dialogue mechanism to strengthen trust and manage differences. It also called on Washington to withdraw the restrictions and create conditions for normal cooperation between companies in both countries. The ministry’s October 20 statement sets out that proposal.
The ministry said China would closely monitor developments and take all necessary measures in response to any action that substantially harms China’s interests.
