US to restrict Chinas access to US cloud services

This comes amidst an escalating dispute between China and the US over access to high-tech microchips

According to the Wall Street Journal, the Biden administration is preparing to impose restrictions on Chinese companies’ access to US cloud computing services. The move is part of a broader effort to tighten controls on technology exports to China and safeguard US national security interests. People familiar with the situation revealed that the new rule would require US cloud service providers, including Amazon and Microsoft, to obtain US government permission before offering cloud computing services that utilize advanced artificial intelligence (AI) chips to Chinese customers.

The anticipated restriction, which is expected to be implemented by the US Department of Commerce in the coming weeks, follows the expansion of the semiconductor export control policy introduced in October. The measure aims to ensure that sensitive technologies, particularly those related to AI and cloud computing, do not fall into the hands of Chinese entities that may pose potential risks to national security.

At present, neither the Commerce Department nor the technology giants Microsoft and Amazon have provided an official comment regarding the matter.

This development comes amidst an escalating dispute between China and the US over access to high-tech microchips. China recently announced that it would exercise control over the export of certain metals commonly used in the semiconductor industry. The newly imposed controls require exporters to seek permission for shipping specific gallium and germanium products. China stated that these measures are in place to protect national security and safeguard its own interests.

The actions taken by both the US and China reflect the growing tensions in the technology and semiconductor sectors, as both nations seek to maintain their strategic advantages. With the US moving to restrict access to advanced cloud computing services and China implementing controls on metal exports, the technological rivalry between the two countries continues to intensify.



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