US Reportedly Delays Adding Chinese AI Firm DeepSeek to Trade Blacklist

The United States has reportedly delayed adding Chinese AI startup DeepSeek to a trade blacklist, even though the company was approved for inclusion last year, according to a Reuters report citing people familiar with the matter. DeepSeek attracted global attention in January 2025 after launching a low-cost AI model that challenged assumptions about the cost of building advanced artificial intelligence systems. It then raised concerns among US officials and major AI companies. Reuters reported that DeepSeek, memory chipmaker ChangXin Memory Technologies (CXMT), and more than 100 other firms identified as national security risks have not yet been added to the Commerce Department's Entity List despite receiving approval from an interagency committee.

What is US Entity List

According to Reuters, DeepSeek and over 100 other companies were approved last year for addition to the Entity List, a US trade blacklist that restricts access to American goods, software and technology. Companies placed on the list generally require special licenses to obtain US technology, and those licenses are often denied. Reuters reported that the Trump administration has held back publication of the new listings as it seeks to avoid escalating tensions with China.

US officials raised concerns over DeepSeek

A senior US State Department official told Reuters last year that DeepSeek had allegedly supported China's military and intelligence operations. The official also alleged that the company attempted to access advanced US chips through shell companies in Southeast Asia. US AI startup Anthropic claimed earlier this year that it identified a campaign involving DeepSeek and two other Chinese AI labs aimed at extracting capabilities from its AI systems. OpenAI also warned US lawmakers that DeepSeek was attempting to access its models. These concerns have added to scrutiny surrounding the Chinese AI company as competition between the US and China intensifies.

US-China technology rivalry continues

Sources told the news agency that at least 75 Chinese entities involved in advanced semiconductor production, chip equipment manufacturing and AI model development had been approved for blacklisting but are still awaiting publication. The delay comes as Washington and Beijing remain locked in a broader rivalry over technology, trade and national security. Reuters reported that Commerce Department officials have become cautious about adding Chinese firms to the blacklist due to concerns that new restrictions could further increase tensions between the two countries.