In a significant move, the United States has prohibited the use of DeepSeek products in federal civilian information technology systems. The Department of Homeland Security (DHS) has also barred new acquisitions involving DeepSeek or its affiliates, a decision announced by Homeland Security Secretary Markwayne Mullin. This order, implemented under the Federal Acquisition Supply Chain Security Act of 2018, was officially published on October 20, 2026, in the Federal Register.
DeepSeek Products Targeted by the Order
The directive specifically targets Hangzhou DeepSeek Artificial Intelligence Co., Ltd., known for developing the R1 and V3 models. It also encompasses affiliated entities as outlined in federal acquisition regulations. DeepSeek’s privacy policy indicates that user data is processed and stored within China, raising security concerns.
According to the Federal Acquisition Security Council under the 2018 law, exclusion and removal orders can be issued by key officials, including the Secretary of Homeland Security for civilian agencies, the Secretary of Defense for defense-related matters, and the Director of National Intelligence for intelligence operations. This particular order affects only civilian agency procurements and operations, excluding private companies and the general public.
Implications for Federal Contractors
The order extends its reach to federal contractors. Contracts incorporating FAR clause 52.204-30 explicitly forbid the use or supply of any products or services covered by a FASCSA order unless a waiver is granted. Contractors must actively monitor the SAM.gov database for any relevant FASCSA orders and conduct thorough supply chain reviews.
Additionally, contractors are required to report any identified covered products or services to the contracting officer within a three-day period and submit mitigation strategies within ten days. Any new orders can only be applied to existing contracts through formal amendments.
Context and Reactions
Prior to this comprehensive ban, various U.S. entities, including Congress, NASA, and the Navy, had independently restricted DeepSeek from government devices by early 2025. Legislative efforts to formalize these restrictions are ongoing, with bills introduced in both the House and Senate still in committee stages.
China’s foreign ministry has criticized the U.S. actions, with spokesperson Mao Ning stating the measures overextend national security concepts. The ministry emphasized its commitment to safeguarding the rights of Chinese companies. DeepSeek has yet to issue a response to these developments.
This latest order marks a significant step in U.S. efforts to secure its supply chain and IT infrastructure, reflecting ongoing tensions in international technology relations. The situation remains dynamic, with potential implications for future procurement and technology policies.
