The US is preparing to ban Chinese access to US cloud computing services, the Wall Street Journal said on Tuesday, citing people familiar with the matter. This will escalate the tit-for-tat spat with China. If the Biden administration’s new guidelines are implemented, US cloud providers such as Amazon and Microsoft will be required to seek government approval before providing cloud computing services to Chinese customers who use powerful artificial intelligence chips.
“The proposed restriction is seen as a means to close a significant loophole. National security analysts have warned that Chinese AI companies might have bypassed the current export controls rules by using cloud services,” the publication added.
Cloud computing services currently enable consumers to access powerful computing capabilities without the need to purchase expensive equipment such as chips. Despite the fact that Nvidia’s powerful A100 and H100 processors are no longer available, China is able to avoid the sanctions by exploiting a loophole.
China places restrictions on raw materials used in chip manufacture
Notably, Washington’s planned limitations came on the same day that China chose to implement export bans on two rare elements required for semiconductor manufacture. The Commerce Department is anticipated to announce the limits as part of its semiconductor export control strategy as early as next week.
Exports of gallium and germanium, among other industrial chemicals, will be restricted beginning August 1 in order to “protect national security and interests,” Beijing announced on Monday. China’s Ministry of Commerce and Administration of Customs made the decision, stating that exporters must obtain special permission from the State Council, China’s cabinet, for the specified commodities.