The trade war between the US and China is entering new domains, and Artificial Intelligence (AI) is the latest frontier. A US congressional committee has termed DeepSeek, China’s artificial intelligence star, a “profound threat” to America’s national security and accused it of intelligence gathering, intellectual property theft, and working for the Chinese Communist Party.
The bipartisan House Select Committee on the Chinese Communist Party (CCP) published a report on April 16, warning that the Chinese AI company presents multifaceted threats to US national security.
“DeepSeek represents a profound threat to our nation’s security,” the report says, adding that while it “presents itself as just another AI chatbot,” the app “siphons” user data for the Chinese government and creates security vulnerabilities for its users.
The report further alleges that DeepSeek “covertly manipulates” search results to align with Chinese government propaganda.
It relies on a model that “covertly censors and manipulates information pursuant to Chinese law.”
Warning that Deepseek was “designed to unlawfully undermine U.S. technological leadership,” the report says that the model appears to have been built using “stolen U.S. technology” and on the back of U.S. semiconductor chips that are prohibited from sale to China without an export license.
Further, the report warns that the company had ties to military research and strategic labs, including the Zhejiang Lab, which plays a crucial role in advancing China’s scientific and technological capabilities.
The report recommends restricting Nvidia’s sales of AI chips to China and taking swift action to expand export controls to address risks posed by China’s AI models.
Meanwhile, the House panel also launched an investigation into Nvidia’s sales of chips across Asia to determine whether the U.S. chip maker knowingly provided DeepSeek with critical technology to develop AI, potentially violating U.S. export control rules on selling semiconductor chips to China.
The multipronged attack on Deepseek stems from US fears that China could leapfrog the US in the development of critical AI technologies, which will have profound implications for defense, security, and geopolitics.
Quoting an AI executive, the report warns, almost in an apocalyptic tone, that while some people in the AI industry claim that the U.S. holds an 18-month AI lead, in reality, it’s “closer to three months.”
The Key Findings Of The House Panel Report
Spying: The report claims that DeepSeek collects detailed user data and transmits it via a backend infrastructure connected to China Mobile, a U.S. government-designated Chinese Military Company. China Mobile has been banned in the US since 2019.
“DeepSeek acquires extensive personal data on the Americans who use the chatbot, including chat history, device details, and even the way a person types. It then, by its own admission, funnels the data directly back to China, creating a pipeline of problematic foreign data access,” the report says.
This user data is collected and shared with the Chinese government, as required by the country’s cybersecurity and intelligence laws.
The report also notes that Deepseek integrates tracking tools from Chinese tech giants, including ByteDance, Baidu, and Tencent. Some of these companies have been red-flagged by the U.S. Government for serious national security concerns.
F-16 Shootdown: Why U.S. Could Be Behind The 2nd Confirmed Crash Of Ukraine’s Fighting Falcon: OPED
Censoring Information for CCP: The report warns that the DeepSeek chatbot alters and suppresses responses to topics deemed politically sensitive by the CCP in 85% of cases, directly aligning its outputs with Beijing’s censorship directives.
Citing examples, the report said that Deepseek suppresses discussions on topics ranging from democracy, Taiwan, Hong Kong, and PRC human rights abuses.
The danger is clear, the report warns, “millions of Americans are now using an AI system designed to serve the CCP.”
“Beijing is not just censoring the internet at home. It is embedding its Great Firewall into platforms Americans use every day.”
Stealing From U.S. AI Models: The House panel report claims that it is highly likely that DeepSeek used model distillation techniques to create an imitation AI model, copying leading U.S. AI models’ capabilities and violating U.S. companies’ terms of service.
It accuses DeepSeek personnel of “infiltrating” U.S. AI models by purchasing multiple fake accounts using international banking channels.
Use Of Restricted Nvidia chips: The report claims that DeepSeek’s AI model appears to be powered by advanced chips provided by the American semiconductor giant Nvidia.
“DeepSeek has at least 60,000 Nvidia chips, with orders for thousands more Nvidia H20 chips.”
In 2022, the U.S. Department of Commerce’s Bureau of Industry and Security has announced sweeping export controls on advanced computing chips to curb China’s access to the cutting-edge semiconductors crucial for artificial intelligence and military applications.
The report accuses China of importing these advanced chips by skirting US export control rules.
A Warning To US: Prepare For AI Surprises
Apart from recommending stringent export control rules to slow down China’s AI development, the report also warns the US government to be prepared for strategic surprise related to advanced AI.
“The emergence of DeepSeek is a warning to U.S. policy makers that the PRC remains capable of rapidly innovating in today’s most advanced technologies despite U.S. efforts to stop them…U.S. agencies must improve their piecemeal approach to prevent strategic surprises that may prove destabilizing.”
It warns that the potential for AI strategic surprise is most acute in the national security space, and it can provide U.S. adversaries a crucial advantage in conflicts.
After Huawei, Will The US Ban DeepSeek?
Notably, in recent years, the U.S. government has imposed a series of sanctions and bans against several Chinese tech companies driven by national security concerns, economic competition, and rising geopolitical tensions.
The US has also banned several Chinese tech companies for their close relations with the Chinese Military. The U.S. Department of Defense also maintains a list of Chinese Military Companies (CMC). The companies named in this list have to face several restrictions in the US market. By February 2025, 134 Chinese companies have been added to this list, including Huawei, Tencent, drone maker Autel Robotics, and CATL.
In March, the US added 50 Chinese tech companies to its export blacklist for slowing down China’s progress in AI.
While the US has not banned DeepSeek yet, the House panel report warning of “profound security” threats from the Chinese AI company and accusing it of intellectual property theft, illegal data harvesting, and circumventing the US export control list appears to be the first step in that direction.
It remains to be seen whether these restrictions will hinder DeepSeek’s progress. However, what is certain is that the US-China trade war has entered the AI frontier.
- Sumit Ahlawat has over a decade of experience in news media. He has worked with Press Trust of India, Times Now, Zee News, Economic Times, and Microsoft News. He holds a Master’s Degree in International Media and Modern History from The University of Sheffield, UK.
- He can be reached at ahlawat.sumit85 (at) gmail.com
