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A DeepSeek AI sign is seen at a building where the Chinese start-up's office is located in Beijing, China, Feb. 19, 2025. Reuters-Yonhap — A DeepSeek AI sign is seen at a building where the Chinese start-up’s office is located in Beijing, China, Feb. 19, 2025. Reuters-Yonhap

BEIJING — China’s commerce ministry on Tuesday criticised a U.S. government order banning Chinese AI model DeepSeek from federal agency IT systems, saying it harmed Chinese firms’ interests and disregarded understandings reached by the countries’ leaders.

In a statement, the ministry urged the U.S. to “immediately correct wrong practices … and revoke relevant discriminatory restrictive measures,” adding that Beijing would closely monitor developments and “take all necessary measures” to safeguard its interests.

The U.S. Homeland Security Department on Monday ordered the removal of DeepSeek products and third-party services using the Chinese AI model from civilian federal agency IT systems. It also barred agencies from acquiring DeepSeek products or third-party services developed using the model.

DHS said DeepSeek models pose “multiple threat vectors” and raised concerns that their use could result in the transfer of sensitive data to China if used by U.S. government employees or vendors.

Beijing is “strongly dissatisfied and firmly opposes” the order, the commerce ministry said.

China hopes the U.S. will implement the consensus reached by the two leaders, work with China “in the same direction” and make full use of the China-US artificial intelligence dialogue mechanism, it added.

In a separate statement on Tuesday, the ministry also voiced “firm opposition” against U.S. sanctions on five Chinese entities over alleged AI trade secret theft.

The companies sanctioned by the U.S. State Department on Monday were Shanghai Zhisuan Technology — an AI firm founded by former Google software engineer Linwei Ding — a venture capital firm that funded Zhisuan as well as three related entities.

Ding was found guilty in January of stealing AI trade secrets from the U.S. tech giant to benefit two Chinese companies, although his conviction was partially overturned in August.

The Chinese ministry accused the U.S. of “hyping up the so-called ‘trade secret theft’ issue” and of smearing Chinese firms.

The rapid development of AI firms in China is the result of long-term investment and a commitment to technological self-reliance and open cooperation, and has nothing to do with trade secret theft, Beijing said.