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The U.S. Department of Homeland Security has ordered DeepSeek to be completely removed from the computer systems of federal civilian agencies. Sixty days. That is the time administrations have to submit a written waiver request — provided they know exactly when the clock started.
Why It Matters
The uncertainty around timing and enforcement underscores how quickly U.S. government procurement screens can become a broader test case for foreign AI tools in sensitive environments. For markets, it signals that compliance, supply-chain scrutiny, and federal adoption risk may increasingly shape which AI platforms are usable in regulated sectors, beyond the immediate agency ban itself.
The order is based on the Federal Acquisition Supply Chain Security Act of 2018, a law specifically designed to secure the federal government’s technology supply chains. Signed by Markwayne Mullin, it seeks to exclude DeepSeek — and its affiliates — from all federal civilian purchases and deployments. One thing to note: the measure does not affect systems related to national security or intelligence. Its scope is strictly civilian. There is no ambiguity there.
What Agencies Must Remove
Federal civilian agencies have two clear obligations. First, they must stop all new purchases of DeepSeek products or those of its affiliates. Then, they must remove solutions already installed. And this is not limited to applications sold directly under the DeepSeek name — the order also covers third-party products that rely on the company’s technology. In short, if a government tool runs on DeepSeek technology, even indirectly, it is covered.
Washington cites several security concerns to justify the move. Servers hosted in China. Personal data stored on Chinese territory. The possibility of digital tracking. And critical vulnerabilities in the iOS app. These four factors are presented as the fundamental risks justifying the exclusion.
DeepSeek is clearly at the heart of the issue.
The order also calls for active monitoring. Agencies must monitor their data exchanges, strengthen their computer logs and identify any unusual activity. An annual review of the measure is also planned — Washington does not want this to become a permanent decision.
Unclear Dates and the Waiver Question
Things get complicated when it comes to the timeline. The document lists an initial issuance date of July 24, 2026. But it was not published in the Federal Register until October 20. Two dates, one 60-day deadline — and no one knows exactly which one takes precedence.
That is no minor detail. If the 60-day period began on July 24, it would have expired well before the document was officially published on October 20. Agencies would theoretically have missed the waiver window without even having access to the published text. The document says the measures take effect upon issuance — but that does not really settle which date marks the start of the deadline.
The document does not say whether the deadline runs from July 24 or October 20. It is unclear.
Beijing Responds as Washington Sanctions Five Entities
China’s response came quickly. Its Ministry of Commerce denounced a decision that had caused its “strong dissatisfaction” and “firm opposition.” It accused Washington of ignoring agreements reached between the two heads of state and called for the restrictions targeting DeepSeek to be revoked outright.
Mao Ning, a spokesperson for China’s Ministry of Foreign Affairs, also criticized what she sees as an excessive expansion of the concept of national security. She vowed that China would defend Chinese companies. This is probably not the last statement on the issue.
Meanwhile, the U.S. State Department sanctioned five Chinese entities under the Protecting American Intellectual Property Act. The entities are accused of taking part in the theft of Google trade secrets. Those targeted include Shanghai Zhisuan Technology and the MiraclePlus incubator. Three other entities are also in the crosshairs, but their names do not appear in the information available.
These sanctions are separate from the order on DeepSeek. Two different decisions, with two different rationales — one concerns the federal supply chain, the other the theft of intellectual property. But both come amid tensions between Washington and Beijing over artificial intelligence, even as the two countries had begun a dialogue on the issue.
The diplomatic climate around AI is changing fast.
The State Department did not say whether further sanctions could follow in this case. And the question of the waiver deadline — July 24 or October 20 — remains open, with no official answer so far.
Frequently Asked Questions
Which agencies are required to remove DeepSeek from their systems?
All U.S. federal civilian agencies are covered by the order. Systems related to national security and intelligence are outside its scope. The directive also covers some third-party products that rely on DeepSeek technology.
How long do agencies have to request a waiver from the order?
The order provides 60 days from its issuance for submitting a written waiver request. The document lists an initial issuance date of July 24, 2026, but was published in the Federal Register on October 20 — the exact start date of the deadline is not specified in the document.
Which Chinese entities were sanctioned by the State Department?
Five Chinese entities were sanctioned under the Protecting American Intellectual Property Act over the alleged theft of Google trade secrets. They include Shanghai Zhisuan Technology and the MiraclePlus incubator. Three other targeted entities are not named in the information available.
