Quick answer: the tech contest between the US and China moved on several fronts this week. The US ordered federal civilian agencies to remove DeepSeek AI products, including inside third-party apps. The US also sanctioned five Chinese entities over alleged theft of Google AI trade secrets. Meanwhile, reports say Chinese giants such as ByteDance, Alibaba and Tencent are lining up to buy huge numbers of Nvidia’s China-compliant RTX PRO 5500 chips, and China itself has drafted curbs on exporting 40 key technologies.
1. US agencies told to remove DeepSeek
On 20 October 2026, the US Department of Homeland Security published an order excluding DeepSeek products from federal civilian agencies.
- Covered: DeepSeek’s chatbot, API services and coding and reasoning models, products from its affiliates, and third-party products built on DeepSeek technology.
- Immediate action: stop buying DeepSeek products and remove them from agency IT systems.
- Exceptions: agencies can request one within 60 days, reviewed by the cybersecurity agency CISA.
- Reasons given: concerns that the Chinese government could access data and infrastructure, plus earlier findings of weak encryption and insecure data handling in DeepSeek’s mobile app.
- Not covered: private companies and the general public. It is a government procurement and IT rule, not a consumer ban.
This comes days after DeepSeek released its fast, cheap V4.1-Flash-1017 model. We explained it in DeepSeek V4.1-Flash-1017 Explained.
2. Sanctions over AI trade secrets
The US State Department sanctioned five Chinese entities over trade-secret theft linked to Linwei Ding, a former Google engineer previously charged with stealing AI chip and infrastructure secrets. The entities reportedly include Shanghai Zhisuan and MiraclePlus.
3. China’s appetite for Nvidia chips
- Nvidia launched the RTX PRO 5500, a Blackwell-based workstation card with 84GB of memory, in September 2026.
- The Information reported in late September that Beijing may allow firms like Alibaba and ByteDance to buy it.
- More recent reports say ByteDance, Alibaba and Tencent have ordered more than 3 million cards worth over $35 billion, but that Nvidia can make only about 3 million export-compliant chips in 2027, so buyers may receive a small fraction of what they asked for. These figures are unconfirmed.
4. China’s own export curbs
The pressure runs both ways. On 16 October, China published a draft list of 40 technologies in AI, solar and biotech that it wants to ban or license for export. We covered what it means for India in China Restricts Export of 40 Technologies.
What it means for India
- Chips: with Nvidia supply tight and contested, Indian AI startups and data centres face competition for the same hardware. That strengthens the case for the IndiaAI compute programme and domestic chip plans.
- AI models: Indian companies working with US government clients may need to show their tools don’t include DeepSeek technology.
- Opportunity: as supply chains split, India is positioning itself as a trusted alternative for electronics, software and AI services.
Frequently asked questions
Is DeepSeek banned in the US?
Only for federal civilian agencies. The DHS order does not ban private companies or the public from using DeepSeek.
Why did the US remove DeepSeek from government systems?
DHS cited concerns that the Chinese government could access data and infrastructure, and earlier security findings about DeepSeek’s app.
What is the Nvidia RTX PRO 5500?
A Blackwell-based workstation graphics card with 84GB of memory, launched in September 2026, that Chinese tech firms reportedly want to buy in large numbers.
Does the DeepSeek order affect Indian users?
Not directly. It applies to US federal agencies, but Indian firms supplying the US government may need to comply.
Sources: BleepingComputer; ExecutiveGov; The Next Web (citing The Information); AI Weekly. Chip order figures are unconfirmed reports.
