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ARTICLE · 27 JUNE 2025

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Navigating Uncertainty: Regulatory Challenges For Chinese Tech Firms In 2025

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
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Herbert Smith Freehills Kramer LLP

Herbert Smith Freehills Kramer LLP

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In just one month, Chinese AI start-up DeepSeek's technological prowess and cost-effectiveness has upended global tech industry expectations and markets – and prompted global regulatory scrutiny.

GlobalTechnology
Justina Zhang
Justina Zhang
Weina Ye
Weina Ye
Nanda Lau
Nanda Lau
Kwok Tang
Kwok Tang
Author LinkedIn connections

In just one month, Chinese AI start-up DeepSeek's technological prowess and cost-effectiveness has upended global tech industry expectations and markets – and prompted global regulatory scrutiny.

As DeepSeek's AI Assistant soared to the top of the App Store download list, regulation increased just as rapidly. Australia, Italy, India, South Korea, Taiwan and the US quickly implemented restrictions due to concerns over data compliance and national security.

This response demonstrates the growing challenges of cyber and data compliance for tech companies operating internationally. Scrutiny is swift, and regulation is quickly implemented.

Complex and fast-evolving regulation now covers data access, foreign direct investment (FDI), export control and large platforms and providers.

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