US plans to restrict China’s access to cloud computing services

US plans to restrict China’s access to cloud computing services

According to a report, sources familiar with the situation claim that U.S. officials intend to restrict Chinese companies access to cloud computing as a measure of security.


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According to The Wall Street Journal, officials in the United States may restrict China’s cloud computing access in order to protect the advanced technology of the country.

According to the Report, Biden Administration proposed to add controls to the access Chinese companies have to U.S. based cloud computing services such as Amazon Web Services and Microsoft.

The WSJ, citing close sources, reported that providers, including those above, will need to get government approval before they can provide services to Chinese clients using powerful artificial intelligence chips.

The report stated that this would close a major hole in the sanctions already in place on chip exports. National security analysts had suspected Chinese companies were able to circumvent restrictions by using cloud services.

Analysts predicted that Chinese consumers could access advanced computing through cloud services, without having to buy the banned chips such as Nvidia A100 chips used for AI development.

The WSJ reported that, according to sources, the Commerce Department is expected to unveil new measures within the next few weeks.

Cointelegraph reached out to Google Cloud and AWS but has yet to receive a reply.

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The U.S. first imposed sanctions in October 2022 on Chinese semiconductor chip access, as part of an effort to slow the advancement of the industry abroad. These regulations prevented Chinese developers from accessing more advanced chips.

On June 28, the administration announced that it was considering tightening up the measures, including clamping down on the computing power of chips which are still exportable.

On July 3, the Chinese government announced that it would implement export controls for gallium and germanium, which are both heavily used in semiconductors needed for AI.

China is one the top producers of germanium and gallium in the world. The chip industry could be negatively affected by a limited access to these metals.

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