In an effort to protect its advanced technology, the United States is reportedly considering restricting China’s access to cloud computing services, according to a report in the Wall Street Journal. The Biden Administration has proposed implementing controls on Chinese companies’ usage of US-based cloud computing services like Amazon Web Services (AWS) and Microsoft. Under these proposed measures, providers would require government approval before offering services that utilize powerful artificial intelligence (AI) chips to Chinese clients.
The existing sanctions on chip exports have a potential loophole that allows Chinese companies to bypass restrictions through cloud services. By accessing cloud services, Chinese customers can tap into advanced computing capabilities without the need to purchase sanctioned chips. It is believed that this restriction on cloud computing services would address this issue. The Commerce Department is expected to announce the new measures in the coming weeks.
These proposed restrictions build upon the initial sanctions imposed by the US in October 2022, which limited Chinese developers’ access to semiconductor chips to slow down industry advancement abroad. The recent considerations include tightening measures to restrict the computing power in exported chips as well. In response, the Chinese government announced plans to implement control over exports of gallium and germanium products, crucial components used in producing high-quality semiconductors essential for AI development. China is among the world’s major producers of these materials, so limited access could negatively impact the chip manufacturing industry.
The implications of such restrictions could have wide-ranging consequences for both nations. By limiting China’s access to cloud computing services, the US aims to enhance its own national security by safeguarding advanced technology. However, it may also lead to a significant shift in the technological landscape and global competition between the two countries. The outcome of these measures will likely influence the future trajectory of technology and international relations.