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Factbox-Governments, regulators increase scrutiny of China's DeepSeek - Finance news and analysis from Global Banking & Finance Review
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Factbox-Governments, regulators increase scrutiny of China's DeepSeek

Published by Global Banking & Finance Review

Posted on January 6, 2026

4 min read

· Last updated: October 20, 2026

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Global Regulators Heighten Scrutiny of DeepSeek AI Amid Security Concerns

International Responses to DeepSeek AI's Security and Privacy Practices

Oct 20 (Reuters) - Chinese AI startup DeepSeek, which said in January last year it had developed an AI model to rival ChatGPT at a much lower cost, has come under scrutiny in some countries for its security policies and privacy practices.

The US Department of Homeland Security is ordering the removal of DeepSeek products from civilian agency IT systems, the latest action against the Chinese AI startup.

According to its own privacy policy, DeepSeek stores numerous pieces of personal data, such as requests to its AI programme or uploaded files, on computers in China.

Below are countries' actions regarding DeepSeek:

Australia

Government Device Ban

In February last year, Australia banned DeepSeek from all government devices over concerns that it posed security risks.

Czech Republic

Public Administration Restrictions

The Czech government banned the country's public administration from using any of the services of Chinese AI startup DeepSeek in July last year, due to data security concerns.

France

Privacy Watchdog Investigation

France's privacy watchdog said in January 2025 it will question DeepSeek to gain a better idea of how the Chinese startup's AI system works and any possible privacy risks for users.

Germany

App Store Removal Request

Germany has asked Apple and Google to remove DeepSeek from their stores due to concerns about data safety, a data protection authority commissioner said in June last year.

India

Official Use Restrictions

India's finance ministry asked its employees at the beginning of February last year to avoid using AI tools including ChatGPT and DeepSeek for official purposes, citing risks posed to confidentiality of government documents and data.

Italy

Antitrust Investigation and App Block

Italy's antitrust watchdog AGCM has ended an investigation into the Chinese AI system DeepSeek for allegedly failing to warn users that it may produce false information, agreeing to binding commitments as a condition for closing the case.

Earlier last year, it blocked the app citing a lack of information on its use of personal data.

Netherlands

Data Collection Probe

The Netherlands' privacy watchdog said in January last year, it would launch an investigation into Chinese artificial intelligence firm DeepSeek's data collection practices and urged Dutch users to exercise caution with the company's software.

Civil Servant Ban

The government has also banned civil servants from using the app, citing policy regarding countries with an offensive cyber program, the government spokesperson said in late July.

Russia

AI Collaboration

Russia's President Vladimir Putin in early February last year instructed Sberbank to collaborate with Chinese researchers on joint AI projects, a top executive at Russia's biggest bank told Reuters.

South Korea

App Suspension and Reinstatement

South Korea's data protection authority said in mid-February last year that new downloads of the DeepSeek app had been suspended in the country after the startup acknowledged failing to take into account some of the agency's rules on protecting personal data.

Earlier last year, the industry minister had temporarily blocked employee access to DeepSeek due to security concerns.

The service became available again at the end of April in 2025.

Taiwan

Government Ban and Censorship Concerns

Taiwan in February last year banned government departments from using DeepSeek's service as it saw it as a security risk. It also raised concerns about censorship on DeepSeek and the risk of data ending up in China.

United States

Federal and State Actions

The Department of Homeland Security said earlier this month it was ordering the removal of DeepSeek products, and third-party services using its models, from US civilian agency IT systems and banning their acquisition. It said the models pose "multiple threat vectors," including the possible transfer of sensitive data to China.

Several US agencies, including the Commerce Department and the Navy, and states including New York, Tennessee and Virginia, had previously banned DeepSeek on government devices.

Potential Penalties and Legislative Actions

The Trump administration is weighing penalties that would block DeepSeek from buying US technology, and is debating barring Americans' access to its services, the New York Times reported in April.

A group of nine US lawmakers sent in December a letter to US Secretary of Defense Pete Hegseth urging the Pentagon to add a slew of Chinese technology firms, including DeepSeek, to a list of entities allegedly assisting the Chinese military.

Seven Republican US senators in August already asked the Commerce Department to evaluate potential data security vulnerabilities posed by Chinese open-source AI models like DeepSeek.

(Compiled by Mateusz Rabiega, Paolo Laudani and Tristan Veyet in Gdansk and Prathik Jayaprakash in Bengaluru; Editing by Matt Scuffham and Devika Syamnath)

Key Takeaways

  • DeepSeek stores users’ prompts, uploads, and personal data on servers in China, raising cross-border privacy and national security concerns (cdn.deepseek.com).
  • Multiple governments—including the U.S. DHS, Australia, Italy, South Korea, Taiwan, and the Czech Republic—have restricted or banned its use in public-sector environments due to security risks (finance.yahoo.com).
  • Investigations and reports allege DeepSeek’s infrastructure may channel data to entities connected with the Chinese military or state surveillance apparatus, and that outputs may be censored to align with CCP messaging (selectcommitteeontheccp.house.gov)

Frequently Asked Questions

Why are countries banning or restricting DeepSeek?
Countries are banning or restricting DeepSeek due to concerns over data security, privacy risks, and the potential for sensitive information being transferred to China.
Which countries have taken action against DeepSeek?
Actions have been taken by Australia, Czech Republic, France, Germany, India, Italy, Netherlands, Russia, South Korea, Taiwan, and the United States.
What actions did the US government take regarding DeepSeek?
The US Department of Homeland Security ordered the removal of DeepSeek products from civilian IT systems and banned their acquisition, citing security threats.
What concerns do European regulators have about DeepSeek?
European regulators are concerned about DeepSeek's data collection practices and privacy policies, leading to investigations and bans in countries like Germany, France, and the Netherlands.
Has DeepSeek responded to regulators' concerns?
DeepSeek has acknowledged some failings and agreed to commitments, such as with Italian regulators, while continuing discussions with other authorities.

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