A bipartisan group of US lawmakers has introduced legislation to ban federal employees from using the Chinese artificial intelligence chatbot DeepSeek on government devices, citing national security concerns and the potential for data misuse by Beijing.

Representatives Josh Gottheimer and Darin LaHood announced the proposed “No DeepSeek on Government Devices Act” on Thursday, warning that the chatbot’s connections to China could pose a serious security risk to federal networks.

The bill would require all government agencies to remove DeepSeek, as well as any app developed by its parent company, High Flyer, within 60 days.

“The Chinese Communist Party has made it abundantly clear that it will exploit any tool at its disposal to undermine our national security, spew harmful disinformation, and collect data on Americans,” Gottheimer said in a statement.

We simply can’t risk the CCP infiltrating the devices of our government officials and jeopardizing our national security.

Proposed DeepSeek ban follows ban on TikTok

The proposed ban is the latest escalation in the ongoing tech rivalry between the United States and China.

DeepSeek made headlines recently after unveiling an advanced AI model, R1, which rivals leading American AI systems despite being developed under US export restrictions on high-powered AI chips.

DeepSeek’s breakthrough has fuelled concerns in Washington that China’s AI sector is progressing faster than anticipated.

The chatbot’s ability to process vast amounts of information efficiently, while requiring fewer computing resources, has led to speculation that Beijing could use similar models to strengthen its influence in global AI research and applications.

Lawmakers have compared the situation to TikTok, the Chinese-owned social media app that has been the subject of US national security debates for years.

Federal and state agencies have already banned TikTok on government devices due to concerns that its parent company, ByteDance, could be forced to share American user data with Chinese authorities.

Now, TikTok faces a looming ban unless ByteDance sells the platform, following a law passed with bipartisan support last year.

Cybersecurity experts warn of data risks due to DeepSeek

Security experts say AI-powered chatbots like DeepSeek pose additional risks because of how they store and process user interactions.

Many AI companies use data from chatbot conversations to improve their models, raising privacy concerns about potential government surveillance.

“Users need to be aware that any data shared with the platform could be subject to government access under China’s cybersecurity laws, which mandate that companies provide access to data upon request by authorities,” NordVPN cybersecurity expert Adrianus Warmenhoven was quoted as saying in a report by CNN.

The United States is not alone in scrutinizing DeepSeek. Australia, Italy, and Taiwan have already taken steps to limit the chatbot’s influence, citing similar security risks.

DeepSeek has not publicly responded to the proposed US ban, but its rapid rise in the AI sector has added to growing fears that China may soon rival Silicon Valley’s dominance in artificial intelligence.

As lawmakers push for tighter controls, the debate over AI and national security is expected to intensify in the months ahead.

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Unions representing employees of the United States Agency for International Development (USAID) have filed a lawsuit against President Donald Trump and his administration over significant changes to the global aid agency.

USAID supports critical humanitarian missions in more than 100 countries, and thousands of its workers now face potential job losses as the administration implements substantial budget cuts.

The lawsuit, filed on Thursday by Public Citizen Litigation Group and Democracy Forward on behalf of the American Foreign Service Association (AFSA) and the American Federation of Government Employees (AFGE), alleges that the administration’s actions are unconstitutional and lacked congressional approval.

The origins of USAID trace back to President John F. Kennedy’s efforts to counter Soviet influence in developing nations during the Cold War.

Today, the agency oversees the majority of the US’s $70 billion foreign aid budget, focusing on fostering goodwill and addressing humanitarian crises to mitigate national security risks.

Humanitarian and security crisis

The unions argue that the Trump administration’s moves to downsize USAID have created a “humanitarian crisis” and jeopardized national security, as well as the livelihoods of thousands of employees.

The lawsuit seeks a temporary restraining order to halt further changes and reverse recent actions as the legal process unfolds.

Randy Chester, vice president of AFSA, emphasized the broader consequences, stating, “This reckless decision is sowing chaos and fear” while placing USAID staff and ongoing projects at risk.

Chester also highlighted the financial burden of repatriating displaced USAID workers, estimating the cost to taxpayers at $20 million.

The dismantling of USAID has reportedly disrupted life-saving programs worldwide, including malaria prevention efforts, clinical pharmaceutical trials, and HIV prevention initiatives.

The lawsuit underscores the gravity of the situation, citing its impact on vulnerable populations.

“Deaths are inevitable,” the complaint states. “Already, 300 babies that would not have had HIV, now do.

Thousands of girls and women will die from pregnancy and childbirth. Without judicial intervention, it will only get worse.”

Elon Musk’s DOGE plans

Elon Musk, who has reportedly advised the administration, has made controversial remarks about USAID, calling it a “criminal organisation” and a “radical-left political psy op.”

He has also suggested the agency should be dismantled entirely.

During an X Spaces conversation earlier this week, Elon Musk stated, “With regards to the USAID stuff, I went over it with (the president) in detail, and he agreed that we should shut it down.”

On Sunday evening, when asked about USAID, President Donald Trump told reporters, “It’s been run by a bunch of radical lunatics, and we’re getting them out, and then we’ll make a decision” regarding its future.

The administration reportedly plans to retain only 294 of USAID’s more than 10,000 employees.

Most of the workforce has been placed on “administrative leave,” leaving only a small group to manage essential operations.

Trump faces legal challenges

The lawsuit is one of many challenges facing the Trump administration.

In recent weeks, federal judges have blocked several of Trump’s executive orders, including one targeting birthright citizenship under the 14th Amendment.

A US judge on Thursday issued a temporary block on the Trump administration’s proposed buyout for federal workers, delaying the plan until at least Monday.

Other rulings have stalled funding freezes and struck down measures affecting transgender individuals in federal prisons.

The unions’ legal challenge highlights the stakes of the USAID cuts, emphasizing the potential long-term consequences for global aid programs and U.S. leadership in humanitarian efforts.

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Hong Kong’s postal service has extended its suspension on shipping items containing goods to the United States, even after the US postal administration reversed its temporary ban on parcels from China.

The ongoing restriction highlights escalating trade tensions between the two economies, with Hongkong Post citing the need for further clarification on new tariff rules before resuming deliveries.

The dispute follows Washington’s decision to impose an additional 10% tariff on Chinese imports, eliminating a previous exemption that allowed small-value shipments to enter duty-free.

The US initially halted all parcel shipments from China, including those from Hong Kong, before abruptly reversing course.

Despite this change, Hongkong Post has maintained its suspension, citing unresolved issues related to duty collection and regulatory compliance.

E-commerce faces cost pressures

The sudden policy changes have introduced new challenges for cross-border e-commerce platforms reliant on cost-effective shipping from China.

Companies like Shein and Temu, which have thrived by leveraging direct-to-consumer shipping routes under the former duty-free threshold of $800, now face an unpredictable regulatory environment.

With nearly $427 billion worth of Chinese goods entering the US in 2023, changes in tariff policies could significantly impact consumer prices, particularly in categories such as electronics, apparel, and household items.

Cheap and fast shipping has been a major driver for platforms catering to budget-conscious American consumers, making any additional costs from tariffs a potential threat to their business models.

Retail analysts note that higher shipping costs and import duties could force e-commerce platforms to reconsider their fulfilment strategies.

Some companies may seek alternative distribution channels, such as warehousing goods in intermediary markets, to bypass direct shipments from China.

Others may adjust pricing or offer bulk shipping options to offset increased costs.

Hong Kong caught in the middle

The suspension of parcel shipments from Hongkong Post underscores the broader economic strain caused by geopolitical tensions between the US and China.

While Hong Kong maintains a separate trade status under its Basic Law, Washington no longer grants the city preferential treatment in trade matters.

The removal of its special customs status has exposed Hong Kong exports to the same tariffs imposed on mainland Chinese goods, further complicating the city’s role in global trade.

The Hong Kong government has strongly criticised the US tariffs, urging Washington to “rectify its wrongdoing” and reconsider its trade policies.

The city’s authorities argue that the new duties unfairly penalise Hong Kong businesses, disrupting supply chains and creating unnecessary trade barriers.

Logistics industry in limbo

Logistics firms and postal services operating in the region face increasing uncertainty as they attempt to navigate shifting US import policies.

While the US Postal Administration has stated that it will coordinate with Customs and Border Protection to ensure proper tariff collection, businesses remain concerned about potential delays and regulatory confusion.

For now, Hongkong Post has yet to announce when it will lift the suspension, leaving customers and businesses in limbo.

The ongoing uncertainty is particularly problematic for companies relying on the city as a key logistics hub for shipments to North America.

Industry experts caution that further trade restrictions or inconsistent policy enforcement could lead to disruptions across multiple sectors.

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Russell Vought has been confirmed as the director of the Office of Management and Budget (OMB).

The Senate voted 53-47 in favour of Vought, a key figure in President Donald Trump’s economic strategy and one of the architects of Project 2025.

His appointment has sparked fierce debate, with Democrats staging an all-night protest to highlight their opposition.

At the core of their concerns is Vought’s involvement in the Heritage Foundation’s controversial blueprint, which outlines a dramatic restructuring of federal agencies.

His role in shaping policies that aim to consolidate executive power and overhaul the federal workforce has drawn significant scrutiny.

With his confirmation, Vought will be responsible for managing the $6.75 trillion federal budget, overseeing funding allocations that can have far-reaching economic and political implications.

His leadership at OMB comes at a critical time, with Trump’s administration pushing forward with aggressive budget cuts and restructuring efforts that could redefine the role of the federal government.

Project 2025’s impact on federal governance

Project 2025, a policy agenda backed by the Heritage Foundation, has been at the centre of the controversy surrounding Vought’s confirmation.

The document proposes a sweeping transformation of federal agencies, advocating for the removal of civil service protections, restructuring of independent regulatory bodies, and placing the federal bureaucracy under direct presidential control.

Critics argue that these measures threaten the checks and balances of the US government by giving the executive branch unprecedented control over agencies that have historically operated with a degree of independence.

One of the most contentious proposals is the removal of job protections for thousands of federal employees, allowing them to be replaced by political appointees.

Vought played a crucial role in shaping these policies, writing the section on executive power and serving as a policy director for the Republican National Committee’s 2024 platform.

His appointment raises concerns that he will implement Project 2025’s vision, potentially reshaping government agencies to align with Trump’s political agenda.

Budget cuts and federal agency restructuring

As OMB director, Vought will oversee funding decisions that could have major consequences for public services, foreign aid, and economic policy.

Trump’s administration has already signalled plans to reduce funding for the US Agency for International Development (USAID), implement federal workforce buyouts, and shift resources away from regulatory agencies.

Democrats have voiced alarm over these developments, warning that Vought’s leadership could accelerate efforts to shrink the government.

His past tenure at OMB during Trump’s first administration saw deep budget cuts, including reductions in environmental protection, healthcare funding, and social welfare programmes.

The confirmation vote also comes as the Biden administration’s economic policies are being reversed.

With Vought in control of OMB, major shifts in funding priorities are expected, particularly in areas such as infrastructure, climate policy, and financial regulation.

Political divisions deepen as Senate confirms Vought

The Senate vote reflected deep political divisions, with all 53 Republican senators backing Vought’s confirmation, while the 47 Democrats opposed it.

The Democratic leadership framed the vote as a battle over the future of American governance, arguing that Vought’s policies could lead to an erosion of government accountability and the expansion of executive power.

Throughout the overnight session, Democratic senators sought to delay the vote and draw public attention to the potential consequences of Vought’s policies.

Despite their efforts, the Republican majority ensured his swift confirmation.

Vought’s return to OMB marks a continuation of the policy battles that defined Trump’s first administration.

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Oil and gas traders are likely to request tariff exemptions from Beijing, according to a Reuters report. 

The Chinese government intends to implement these tariffs on US crude and liquefied natural gas (LNG) imports starting February 10.

In the escalating trade tensions between the US and China, new tariffs have been implemented by both sides.

Shortly after US President Donald Trump imposed tariffs on Chinese goods, China retaliated with its own set of tariffs.

China’s Finance Ministry announced that it would impose a 15% levy on imports of US coal and LNG, and a 10% levy on crude oil.

These tariffs, along with additional levies on farm equipment and certain automobiles, are set to take effect on February 10. 

This move marks a significant escalation in the ongoing trade dispute between the two largest economies in the world.

According to data from analytics firms Kpler and LSEG quoted in the report, six vessels are currently on their way to China.

These include four tankers carrying a total of 6 million barrels of US crude oil, comprising West Texas Intermediate (WTI) and Alaska North Slope (ANS), and two LNG vessels.

Tariffs add to trading woes

Three oil traders told Reuters on Friday that companies would likely need to apply for waivers for tankers that have already been booked.

Two of the traders added that it would be more difficult to obtain waivers for new deals.

Meanwhile, reselling US oil was improbable due to unfavorable prices amidst increased production, according to a Chinese trade source.

Two traders specializing in US oil revealed that they haven’t observed any re-offered cargoes originally meant for China, according to Reuters. 

This is because there are still unsold cargoes available for March loading. 

Unipec, the trading arm of Sinopec, Asia’s largest refiner, and the biggest Chinese buyer of American oil, has long-term US oil deals and participates in the pipeline oil business in the US, according to the report. 

A source told Reuters:

The 10% tariff means Unipec needs to do more swaps, such as sending more oil into Korea and Japan in exchange for whatever these buyers have to swap out for.

The source also said that Unipec could choose to increase its sales to US domestic customers.

LNG flows

A minimum of eight additional Very Large Crude Carriers (VLCCs) were reserved by companies such as Vitol, Gunvor, Occidental, ExxonMobil, and Atlantic Trading and Marketing Inc., the trading division of France’s TotalEnergies.

Meanwhile, the Mu Lan vessel, which loaded LNG at Corpus Christi on December 16, is scheduled to reach the Fujian terminal on Thursday, according to the report.

The imposition of a 15% tariff on US LNG exports to China is expected to have a significant impact on global LNG trade flows.

According to analysts at Kpler, this tariff will likely lead to a sharp decline in US LNG exports to China. 

As a result, US LNG exporters will likely seek alternative destinations for their products, with Europe and other Asian countries emerging as the most likely beneficiaries.

This shift in trade flows could have several implications. For China, it may need to source LNG from other suppliers, potentially at higher prices.

For Europe, increased access to US LNG could help diversify its energy sources and potentially lower prices. 

For other Asian countries, the availability of US LNG could provide an opportunity to secure reliable energy supplies.

“China is expected to further increase LNG imports from Qatar, Russia, and other suppliers to replace potential declines from the US,” analysts at Kpler said.

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