A senior State Department official confirmed this week that Chinese AI firm DeepSeek has supported, and continues to support, China’s military and intelligence operations. The case highlights Beijing’s broader strategy of using American technology platforms to advance its defense goals.
DeepSeek used Southeast Asian shell companies to bypass U.S. export controls on advanced semiconductors, allowing it to operate within the U.S. tech ecosystem while maintaining ties to the People’s Liberation Army (PLA). The incident illustrates how China exploits U.S. openness to access critical technology and gather intelligence, an approach likely mirrored across other Chinese firms.
DeepSeek’s operations reflect a broader Chinese strategy of using commercial technology platforms for intelligence gathering. U.S. officials report that DeepSeek appears in procurement records for the People’s Liberation Army (PLA) over 150 times and has provided services to PLA research institutions. With a global user base, the company gained access to vast amounts of user data, which it transmitted to China via infrastructure linked to China Mobile, a state-owned telecom provider.
Congressional analysis of DeepSeek’s privacy policies confirms this data flow. The platform collected user queries, data inputs, and usage patterns from millions worldwide, allowing China to profile U.S. research priorities, problem-solving methods, and technological capabilities. This is intelligence gathering at scale, made possible by users unknowingly feeding data into a system tied to a foreign military.
The episode exposes broader flaws in U.S. efforts to restrict China’s access to sensitive technology. Despite bans on sales of advanced AI chips to Chinese firms, DeepSeek reportedly acquired large volumes of Nvidia’s H100 processors by exploiting third-party shell companies and remote data center access. These methods highlight how Chinese firms bypass restrictions through indirect channels, suggesting systemic gaps in enforcement.
DeepSeek’s presence on major U.S. cloud platforms, Amazon, Microsoft, and Google, further expanded China’s access to American infrastructure. This integration allowed Beijing to collect intelligence while posing as a commercial partner, gaining insight into cloud operations and user behavior.
Air Force officials confirm that DeepSeek’s activities align with a broader Chinese campaign to infiltrate U.S. critical infrastructure. Beijing-linked cyber actors have targeted government systems, defense contractors, and infrastructure tied to U.S. and allied military operations.
Chinese forces have already breached networks on Guam, a key military hub in the Pacific, and have been preparing for potential cyberattacks since early 2024. Testimony indicates these actors continue to collect intelligence and pre-position for future attacks, maintaining persistent access to systems supporting U.S. military operations and the defense industrial base.
China’s cyber operations are reinforced by an expanding network of space-based intelligence assets. Beijing now operates more than 1,000 satellites, including around 500 dedicated to surveillance and intelligence collection. These platforms allow the People’s Liberation Army to monitor U.S. military activity worldwide and support targeting through integrated ISR (intelligence, surveillance, and reconnaissance) systems.
Space-based data enhances cyber operations by providing real-time targeting and operational intelligence, supporting both digital and physical attacks. The integration of space and cyber capabilities gives China a global, multi-domain intelligence apparatus with direct military applications.
The situation reveals systemic flaws in U.S. efforts to protect sensitive technology from exploitation by China. Beijing continues to use commercial platforms to support military modernization and intelligence collection, taking advantage of American openness to access innovation without paying the full development cost. DeepSeek’s integration into U.S. digital infrastructure shows how foreign intelligence services can collect data at scale while appearing to operate as legitimate businesses. The company’s nefarious activities offer a clear view of Beijing’s playbook.
There is an urgent need to reevaluate how the U.S. protects its technological edge amid intensifying competition with China. Existing export controls and security reviews are not equipped to stop indirect technology transfers through complex commercial ecosystems. As a result, even routine use of compromised platforms by government agencies or contractors may unintentionally support Chinese intelligence operations.
To counter this threat, U.S. policy must treat commercial technology, intelligence risk, and strategic competition as inseparable. DeepSeek exemplifies how China blends civilian and military objectives and uses commercial engagement as a tool of strategic competition, not just trade. Its success likely reflects a broader pattern across China’s tech sector.
DeepSeek offers a clear view of Beijing’s playbook and underscores the urgent need to reevaluate how the U.S. protects its technological advantage in an era of global power rivalry.
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