According to a report in the Wall Street Journal, officials in the United States are contemplating imposing restrictions on China’s access to cloud computing services as a means to protect advanced technology in the country.
The Biden Administration is said to have proposed implementing controls on the level of access Chinese companies have to U.S.-based cloud computing services such as Amazon Web Services (AWS) and Microsoft. The report suggests that providers, including the aforementioned companies, would require government approval before offering services that utilize powerful artificial intelligence (AI) chips to Chinese clients.
The move is aimed at closing a significant loophole in the existing sanctions on chip exports, as it is suspected that Chinese companies have been able to circumvent restrictions through cloud services. Analysts have speculated that Chinese customers could access advanced computing capabilities via cloud services without needing to purchase sanctioned chips like Nvidia’s A100 chips, which are commonly used in AI development.
Sources indicate that the new measures are expected to be announced by the Commerce Department in the coming weeks. In October 2022, the United States initially imposed sanctions on Chinese access to semiconductor chips, aiming to impede technological advancement in the industry abroad. These regulations limited Chinese developers’ access to more advanced chips available on the market.
On June 28, the Biden Administration revealed plans to potentially tighten these measures further, including restricting computing power in chips that can still be exported.
In response, the Chinese government announced on July 3 its intentions to implement controls on the exports of gallium and germanium products, which are crucial for semiconductor production, particularly in AI development. China is a major producer of gallium and germanium, and limited access to these metals could have a negative impact on the chip manufacturing industry.
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