The US government is reportedly considering blocking China’s DeepSeek from acquiring American technology.

Officials are also discussing restrictions on Americans’ access to DeepSeek’s services.

This comes after new limits on Nvidia’s sales of AI chips to China.

The House Select Committee on Strategic Competition with China has launched an investigation into Nvidia’s chip sales across Asia.

They aim to determine if the company provided DeepSeek with technology that could aid in AI development, potentially violating US regulations.

Nvidia has warned of potential financial impacts, while DeepSeek has not commented.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ A decade-long pattern of reciprocal tech restrictions

The DeepSeek situation continues a long-established pattern of technology access restrictions between the US and China, with both sides implementing barriers.

Since 2009, China has maintained its “Great Firewall” blocking major US tech platforms including Facebook, Google, Twitter, and others from reaching over 800 million Chinese internet users 1.

While China restricts digital services, the US focuses on hardware and intellectual property, with the Trump administration initiating protective measures against China’s “discriminatory and burdensome trade practices” as early as 2018 2.

This restriction pattern helps explain why technology has become a central battleground in US-China relations, with each side using market access as leverage while citing security concerns.

The current AI chip export controls represent an escalation in this technology rivalry, moving beyond consumer platforms to target foundational technologies that power advanced computing capabilities.

2️⃣ AI chip restrictions create ripple effects across global markets

The immediate financial impact of these restrictions is substantial, with Nvidia warning of a $5.5 billion charge due to its inability to fulfill Chinese orders 3.