Technology
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What they're actually in panic over is companies using a Chinese service instead of US ones. The threat here is that DeepSeek becomes the standard that everyone uses, and it would become entrenched. At that point nobody would want to switch to US services.
https://securityconversations.com/episode/inside-the-deepseek-ai-existential-crisis-chinese-backdoor-in-medical-devices/ If you ignore the kind of laent anti China crap, this is a pretty good analysis from a technical perspective. When someone does something faster and cheaper we used to call that progress. Not if China does it I guess, and not if it's open source even if Meta did the same thing with llama.
Exactly, and these kinds of policies will only ensure that the west starts falling behind technologically. Stifling innovation to prop up monopolies will not be a winning strategy in the long run.