According to the Wall Street Journal, US officials are reportedly considering restrictions on China's utilization of cloud computing services in order to safeguard advanced technology in the country. The Biden administration has proposed controlling Chinese companies' access to American cloud computing services like Amazon Web Services ( AWS) and Microsoft.
Under the proposed measures, providers such as AWS and Microsoft would require government approval before offering services that utilize powerful artificial intelligence (AI) chips to Chinese customers. This move aims to close a loophole in existing chip export sanctions, which nation al security analysts believe Chinese Companies could exploit by using cloud services.
By accessing advanced computing power through cloud services, Chinese customers could potentially circumvent the need to purchase recognized chips like the widely-used Nvidia A100 chip for artificial intelligence development. The new measures from the Commerce Department are expected to be announced in the coming weeks, According to sources cited by the Wall Street Journal.
In October 2022, the United States imposed initial sanctions on China's acquisition of semiconductor chips to impede the industry's progress abroad. These rules restrict Chinese developers from accessing more advanced chips available in the market. On June 28, the US government indicated its consideration of further Tightening the measures, including limiting the computing power of chips that can be exported.
In response, the Chinese government announced on July 3 its plans to impose controls on the export of gallium and germanium products, which are widely used in semiconductor production for artificial intelligence development. China is one of the largest global producers of gallium and germanium, and limited access to these metals could have a detrimental impact on chip manufacturing.
