Taiwan Restricts DeepSeek Over National Security Concerns

In an effort to safeguard national security, Taiwan has imposed a prohibition on the use of DeepSeek by government workers and facilities critical to the nation's infrastructure. The decision stems from concerns about DeepSeek's Chinese origin and the potential risks it poses.

What is DeepSeek?

DeepSeek recently emerged as a formidable contender in the realm of artificial intelligence, unveiling its R1 chatbot. This new technology boasts capabilities similar to those of U.S. AI leaders, but notably requires significantly less financial investment.

International Scrutiny

Several countries, including South Korea, Ireland, France, Australia, and Italy, have voiced concerns regarding DeepSeek's data handling practices. Amidst these developments, Taiwan's Ministry of Digital Affairs issued a directive on Friday declaring:

• Government agencies and critical infrastructure facilities are barred from using DeepSeek.

The ministry's statement emphasized that because "DeepSeek AI service is a Chinese product," its operations involve potentially harmful cross-border data transmission and risks of information leakage.

A Broader Context: China's "Grey Zone" Tactics

Taiwan has historically accused China of employing "grey zone" tactics—maneuvers that do not constitute traditional acts of war but include cyberattacks—aimed at asserting sovereignty over Taiwan. These concerns have influenced Taiwan's ongoing policy since 2019 to ban government usage of technologies threatening national security.

Market Impact and Regulatory Actions

DeepSeek's R1 chatbot has captured attention on Wall Street due to its advanced capabilities at reduced costs, especially surprising given the U.S.'s restrictive measures preventing Chinese firms from accessing high-level chips necessary for AI development. In response to these rapid advancements and security concerns, data protection authorities in South Korea and Ireland have demanded that DeepSeek clarify its data management methodologies. Additionally, Italy has gone a step further by launching a formal investigation into the R1 model and banning it from processing Italian user data.

Taiwan's resolute stance underscores the growing global vigilance over information security and the geopolitical implications of emerging AI technologies.