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Taiwan bans its government departments from using DeepSeek
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Taiwan has banned government departments from using DeepSeek’s artificial intelligence service, citing security risks associated with the Chinese startup’s cross-border data handling practices.

Key policy announcement: The Taiwan Ministry of Digital Affairs has issued a directive prohibiting government departments from utilizing DeepSeek’s AI services due to national security concerns.

  • The ministry specifically highlighted risks related to cross-border data transmission and potential information leakage
  • Officials emphasized that DeepSeek’s status as a Chinese product raises particular security concerns given the geopolitical context
  • The ministry indicated it will continue monitoring technological developments and adjust security policies as needed

Geopolitical context: Taiwan’s decision reflects ongoing tensions with China and broader concerns about Chinese technology.

  • Taiwan has historically maintained cautious policies regarding Chinese technology due to Beijing’s territorial claims over the island
  • The directive aligns with Taiwan’s existing pattern of restricting Chinese tech products in government operations
  • Military and political pressure from Beijing continues to influence Taiwan’s technology policies

Global regulatory scrutiny: Taiwan’s action comes amid growing international attention to DeepSeek’s data practices.

  • South Korea’s privacy watchdog has announced plans to investigate DeepSeek’s user data management
  • European authorities in France, Italy, and Ireland are also examining the company’s personal data handling
  • These regulatory actions suggest widespread concern about data privacy and security implications of DeepSeek’s services

Market impact: DeepSeek has shown significant market momentum despite regulatory challenges.

  • The company’s free AI assistant recently surpassed ChatGPT in Apple App Store downloads
  • The surge in DeepSeek’s popularity coincided with a major market shift that saw U.S. tech stocks decline
  • Nvidia experienced a historic $593 billion single-day market value loss, marking the largest one-day decline for any company in Wall Street history

Looking ahead: Taiwan’s ban on DeepSeek may signal a growing trend of national security-based restrictions on Chinese AI technologies, potentially reshaping the global AI competitive landscape while highlighting the increasing intersection of technology, national security, and geopolitical tensions.

Taiwan says government departments should not use DeepSeek, citing security concerns

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