DeepSeek AI faces bans abroad, growth in China

Chinese AI model DeepSeek faces contrasting receptions globally as South Korea's data protection watchdog suspended app downloads while the technology gains significant momentum in China. The suspension came after DeepSeek acknowledged failing to comply with data privacy protection requirements, with officials stating downloads would resume once the app meets compliance standards.

This action follows a similar move by Italy's data protection authority, which previously ordered a block on DeepSeek's chatbot over privacy concerns. Responding to growing international scrutiny, a Chinese foreign ministry spokesperson emphasized that Beijing does not require companies to collect or store personal data in violation of national laws.

In stark contrast, DeepSeek continues to thrive in its domestic market. Tencent, the Chinese tech giant, saw its Hong Kong-listed shares rise over 3% following the announcement of testing DeepSeek integration with its Weixin messaging app. Technology shares in Hong Kong have experienced substantial gains in recent weeks, largely driven by optimism surrounding the AI application.

The divergent reception highlights the complex landscape of global AI deployment. While international regulators prioritize data privacy concerns, Chinese investors remain enthusiastic about DeepSeek's potential to match or surpass Western AI models at reduced costs. This optimism stems from the belief that DeepSeek could serve as a catalyst for boosting China's entire tech sector.

As DeepSeek attempts to expand globally, it faces the challenge of balancing technological innovation with varying international regulatory requirements. The company's experience underscores the growing tensions between rapid AI advancement and data privacy protection, particularly as Chinese tech companies seek to establish a stronger presence in the global market.