China has criticised the United States for ordering federal civilian agencies to remove Chinese AI startup DeepSeek from their IT systems, accusing Washington of harming Chinese businesses and disregarding understandings reached between the two countries’ leaders.
China’s Commerce Ministry said on Tuesday it strongly objected to the US decision and urged Washington to reverse what it described as discriminatory restrictions. Beijing warned that it would closely monitor developments and take necessary measures to protect the interests of Chinese companies.
The response followed an order by the US Department of Homeland Security requiring federal civilian agencies to stop purchasing DeepSeek products and remove existing installations. The restrictions also cover third-party products and services developed using the Chinese company’s technology, although exceptions may be requested.
US officials cited national security concerns, warning that sensitive information entered into DeepSeek systems by government employees or contractors could potentially be transferred to Chinese authorities. The department said the technology presented multiple security risks linked to the company’s operations in China.
Beijing rejected Washington’s approach, arguing that the United States was politicising technology and trade issues. The Commerce Ministry called on the two countries to follow through on understandings reached by President Donald Trump and Chinese President Xi Jinping and make use of their artificial intelligence dialogue mechanism.
China also criticised separate US sanctions against five Chinese entities accused of involvement in the theft of American artificial intelligence trade secrets. The ministry rejected the allegations, describing them as an attempt to smear Chinese companies and arguing that China’s AI advances resulted from sustained investment, technological self-reliance and international cooperation.
DeepSeek attracted global attention in January 2025 after releasing an AI reasoning model that challenged assumptions about the cost of developing advanced artificial intelligence. Its relatively low-cost approach intensified competition with US developers and fuelled debate over the resources required to build powerful AI systems.
The latest dispute adds to mounting tensions between Washington and Beijing over AI, semiconductors and access to critical technologies. The US restrictions extend existing efforts to limit DeepSeek’s use in government systems, while China has been considering its own controls on exports of advanced technologies, including AI-related systems.
OpenAI accelerates fundraising ahead of Anthropic IPO
Meanwhile, OpenAI is seeking to accelerate a fundraising round of about $30 billion before rival Anthropic’s expected initial public offering in mid-November, Reuters reported, citing people familiar with the matter.
The fundraising could value OpenAI at more than $1.4 trillion, as the ChatGPT developer seeks commitments from investors who may also consider participating in Anthropic’s anticipated stock market debut. Existing backers, including Japan’s SoftBank Group and Abu Dhabi-based MGX, were reportedly in discussions about joining the round. OpenAI and SoftBank declined to comment, while Anthropic and MGX did not immediately respond to requests for comment.
OpenAI has told investors its annualised revenue reached $50 billion following the launch of new models, with the company expecting the figure to rise to $70 billion by the end of the year, according to Reuters. The company is also seeking capital to fund substantial infrastructure commitments and strengthen its balance sheet ahead of a potential public listing in 2027.
Anthropic, meanwhile, has been preparing for a possible November IPO. The competition for investor capital comes amid market volatility and growing scrutiny of AI valuations, with investors weighing the companies’ revenue growth, infrastructure costs and prospects for long-term profitability.
OpenAI’s accelerated fundraising timetable could allow it to secure commitments before Anthropic’s financial disclosures invite closer comparisons between the two companies. The effort underscores the growing competition not only to develop advanced AI systems but also to attract the vast amounts of capital required to sustain their expansion.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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