According to a recent report from the Wall Street Journal, authorities in the United States are contemplating measures to limit China’s utilization of cloud computing services as a means to safeguard advanced technology. The Biden Administration has proposed implementing controls on Chinese companies’ access to U.S.-based cloud computing services, including Amazon Web Services (AWS) and Microsoft.
Under the proposed measures, cloud service providers, including the aforementioned companies, would be required to obtain government approval before offering services that employ powerful artificial intelligence (AI) chips to Chinese clients. The objective is to address a significant loophole in current sanctions on chip exports, which some analysts suspect Chinese companies have exploited through cloud services to bypass restrictions.
By leveraging advanced computing capabilities through cloud services, Chinese customers can avoid the need to acquire sanctioned chips like Nvidia’s widely used A100 chips for AI development.
The United States initially imposed sanctions in October 2022, limiting Chinese access to semiconductor chips to hinder the progress of the industry overseas. These regulations resulted in Chinese development becoming disconnected from the more advanced chips available in the market. However, on June 28, the administration expressed its consideration of intensifying these measures by imposing stricter restrictions on the computing power of chips that can still be exported.
In response to these developments, the Chinese government announced on July 3 its intention to implement controls on the export of gallium and germanium products. These materials are extensively utilized in the production of high-quality semiconductors required for the advancement of artificial intelligence (AI) technologies.
These recent actions by both the United States and China underscore the escalating tensions surrounding the technological competition between the two countries. As they seek to protect their technological advantages and maintain control over critical components, such as semiconductors and cloud computing services, further measures and restrictions are likely to be implemented.
Conclusion
The United States is considering measures to limit China’s access to U.S.-based cloud computing services as part of efforts to safeguard advanced technology. By imposing controls on Chinese companies’ utilization of powerful AI chips through cloud services, the U.S. aims to address potential loopholes in existing sanctions on chip exports. These actions reflect the growing tensions in the technological competition between the two nations. As both countries continue to prioritize protecting their technological advantages, further restrictions and measures are expected to emerge.
