Taiwan Bans Government Departments from Using DeepSeek AI

Taiwan's Ministry of Digital Affairs (MODA) has issued a ban on the use of DeepSeek AI, a Chinese artificial intelligence (AI) service, within government departments and critical infrastructure facilities. The ban, announced on January 31, 2025, is a response to growing concerns about national information security and the potential for data leaks.

MODA stated that DeepSeek AI is a Chinese information and communication technology (ICT) product and service, and its operation involves cross-border transmission of data, which could lead to information leakage and other information security concerns. The ban applies to employees of central and local government agencies, public schools, state-owned enterprises, and semi-official organizations, as well as those working on critical infrastructure projects and in government-endowed foundations.

The ban comes amidst a global surge in AI advancements, with countries worldwide raising questions about the data practices and potential national security risks associated with Chinese AI startups. Italy's data protection authority has already blocked access to DeepSeek, citing a lack of transparency regarding its use of personal data. U.S. and Australian officials have also expressed privacy concerns.



DeepSeek's powerful new chatbot, released last month, has rattled markets and caught up with American generative AI leaders at a fraction of the cost. However, the ban on DeepSeek by Taiwan and other countries has raised concerns about the Chinese AI startup's data practices and potential national security risks, negatively impacting its global perception and market position.

Taiwan's ban on DeepSeek AI service has potential economic and political implications for the island, both in the short and long term. In the short term, the ban could have an immediate impact on Taiwan's tech industry, particularly in the AI sector. DeepSeek's AI service might have been used by government agencies and critical infrastructure facilities, and the ban could disrupt their operations temporarily. However, the extent of this impact is not specified in the provided materials.

In the long term, the ban on DeepSeek could strengthen ties between Taiwan and the U.S. By aligning itself more closely with the U.S., Taiwan could lead to further cooperation and investment in the semiconductor industry, which is crucial for Taiwan's economy. Taiwan Semiconductor Manufacturing Co. (TSMC) is already a significant investor in the U.S., with a total investment of $65 billion. Strengthening ties with the U.S. could lead to more investment and technological collaboration in the long term.

The ban on DeepSeek AI service is part of a broader trend of countries raising concerns about the use of Chinese AI technologies. This could lead to increased scrutiny and regulation of Chinese AI companies, potentially affecting their global competitiveness. In the long term, this could have geopolitical implications, as countries seek to maintain their technological advantages and protect their national security interests.

In conclusion, Taiwan's ban on DeepSeek AI service has potential economic and political implications for the island, both in the short and long term. While the immediate impact on Taiwan's tech industry is uncertain, the ban could strengthen ties with the U.S., enhance national security, and foster innovation in Taiwan's AI industry. However, it could also lead to retaliation from China and increased geopolitical tensions.