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US poised to limit China’s access to cloud computing – WSJ

  • July 4, 2023
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The administration of US President Joe Biden is preparing to restrict Chinese tech companies’ access to cloud computing services, which could further strain relations between the world’s two

The administration of US President Joe Biden is preparing to restrict Chinese tech companies’ access to cloud computing services, which could further strain relations between the world’s two economic superpowers.

This was reported by the WSJ with reference to informed sources, Ukrinform reports.

If approved, the new rule will require the largest cloud service providers in the United States, such as Amazon and Microsoft, to obtain permission from the US government to provide cloud computing services to Chinese customers using advanced artificial intelligence chips.

The move will be the next step in the Biden administration’s policy of limiting Beijing’s access to the world’s most cutting-edge supply chains, and is seen as a way to close one of the loopholes for Chinese companies to circumvent the restrictions. US national security analysts warn that Chinese companies in the artificial intelligence (AI) space may have circumvented existing export control rules by using cloud services.

Second, it allows customers to get powerful computing capabilities without purchasing modern equipment, including chips on the US augmented checklist, such as the A100 chips from the American manufacturer Nvidia.

According to WSJ interlocutors, the US Department of Commerce may issue an order in the coming weeks.

In addition to the export control regime, US officials and lawmakers are considering measures to restrict Chinese cloud service providers such as Alibaba and Tencent from operating in the US.

In October, the Biden administration imposed restrictions on exports of advanced chips and equipment, but did not regulate them in final rules. Final rules are expected to be released in the coming weeks, including expanding the scope of the restrictions to include artificial intelligence chips made by Nvidia and other chip makers. The new cloud computing rule will be part of this effort.

Under rules announced by the US last year, American chip manufacturers are required to obtain a license from the Department of Commerce to export certain types of chips used in advanced artificial intelligence computation and supercomputers and used in modern weapon systems.

As reported by Ukrinform, official Beijing has announced that it is restricting the export of products containing gallium and germanium, the critical metals for high-performance microcircuits, 5G communication stations and solar cells.

Source: Ukrinform

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