US Considers Restricting China’s Access to Cloud Computing

The Wall Street Journal reports that U.S. officials are considering restricting China’s access to cloud computing services to protect the country’s advanced technology.

According to the report, the Biden Administration proposed limiting Chinese companies’ access to U.S.-based cloud computing services, including Amazon Web Services (AWS) and Microsoft.

The WSJ reported, citing sources close to the situation, that providers, including those listed above, would need government approval before offering services utilizing powerful artificial intelligence (AI) chips to Chinese clients.

According to the report, this would close a significant loophole in China’s already existing sanctions on chip exports, through which national security analysts suspect Chinese companies have circumvented restrictions by utilizing cloud services.

Analysts hypothesized that Chinese customers could access advanced computing capabilities via cloud services without purchasing sanctioned chips such as Nvidia’s A100 chips, widely used for AI development.

The WSJ reported that, according to sources, the Commerce Department should unveil the new measures in the coming weeks.

The United States imposed its initial restrictions on Chinese access to semiconductor chips in October 2022 to halt industry globalization.

These regulations prevent Chinese developers from accessing the market’s most advanced chips.

The administration announced on June 28 that it was considering tightening the export restrictions mentioned above by limiting the computing power of exportable chips.

The Chinese government announced on July 3 that it would implement export restrictions on gallium and germanium products, which are used extensively in producing AI-required semiconductors.

China is one of the leading producers of gallium and germanium in the world. A lack of access to these metals may harm the chip manufacturing industry.