DeepSeek Aids China’s Military and Evades Export Controls, U.S. Official Says
Chinese AI startup DeepSeek is under scrutiny for allegedly aiding China’s military and intelligence operations, according to a senior U.S. State Department official. The claims, as reported, suggest that the Hangzhou-based company may be circumventing U.S. export laws to gain access to restricted semiconductor technologies.
U.S. Raises National Security Concerns Over DeepSeek
Speaking anonymously, the senior U.S. official revealed that DeepSeek has been sharing sensitive user data and operational statistics with China’s surveillance apparatus, well beyond the open-source access typical of AI research.
“We understand that DeepSeek has willingly provided and will likely continue to provide support to China’s military and intelligence operations,” the official said.
This marks the first time the U.S. government has publicly linked DeepSeek to China’s military-industrial complex, signalling escalating tensions in the ongoing U.S.-China tech rivalry.
DeepSeek’s Alleged Use of Shell Companies to Access Banned Tech
According to U.S. intelligence findings, DeepSeek has attempted to use shell companies in Southeast Asia to acquire high-end semiconductors banned under U.S. export control regulations. These chips, crucial for training large-scale AI models, are heavily restricted due to fears they could be repurposed for military use by the Chinese government.
The alleged evasion tactics deepen Washington’s concerns that China’s AI advancements are being powered by U.S.-origin technologies, despite strict trade restrictions aimed at curbing that very possibility.
DeepSeek’s Global Growth and Rising Influence
In January 2025, DeepSeek made headlines by claiming that its AI reasoning models rivalled or outperformed top U.S. models—all at a significantly lower cost. The announcement sent shockwaves through the global tech industry, positioning the company as a formidable player in the AI race.
DeepSeek’s tools are currently accessible through Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, enabling customers around the world to use its models for various AI-driven tasks.
However, the company’s integration into major U.S. cloud platforms may now raise privacy, security, and compliance concerns, particularly in light of allegations that it shares user data with the Chinese government.
Data Privacy Concerns for DeepSeek’s Global Users
Chinese law mandates that companies operating within the country must hand over data to authorities upon request. But according to the U.S. official, DeepSeek may already be proactively sharing data with Beijing’s intelligence agencies.
This development is especially troubling given DeepSeek’s tens of millions of daily global users, many of whom may not be aware that their data could be accessed by foreign government agencies.
The revelations could prompt regulatory reviews and policy action from the U.S. and its allies, particularly regarding the use of Chinese AI tools in sensitive or government-affiliated sectors.
Broader Implications for U.S.-China Tech Relations
The allegations against DeepSeek come amid a broader U.S.-China tech conflict, where artificial intelligence, semiconductors, and cybersecurity remain key battlegrounds. Washington has already blacklisted multiple Chinese firms under the Entity List due to national security risks, and DeepSeek may face similar restrictions if formal actions follow.
The U.S. government continues to urge caution regarding Chinese AI firms operating globally, especially those with links to military or surveillance applications.
Deepening Scrutiny on AI and Data Sovereignty
As AI becomes increasingly embedded in critical infrastructure, these allegations reinforce the urgent need for:
- Stronger global data governance
- Transparency in AI development
- Clear lines between civilian tech and military applications
If proven true, DeepSeek’s activities could have major consequences for AI regulation, cloud partnerships, and global trust in emerging technology platforms.
