US plans to restrict China’s access to cloud computing – WSJ

The US is preparing to restrict China’s access to American cloud-computing services, the Wall Street Journal reported on Tuesday, citing its sources.

The planned move would likely require cloud-service providers such as Amazon and Microsoft to seek permission from the government before providing services that use advanced artificial-intelligence chips to Chinese companies, the WSJ wrote.

The Biden administration reportedly wants to close a loophole that allows Chinese AI firms to bypass the current chip export control rules. Cloud services allow customers to gain powerful computing capabilities without buying advanced equipment – including chips – on the control list, the Wall Street Journal explained.

The US Department of Commerce is expected to introduce the restriction in coming weeks, the outlet added.

Washington and Beijing have been involved in a dispute over semiconductors and other advanced technologies for several months.

The US administration published a sweeping set of export controls in October, which included a measure to cut China off from certain semiconductor chips made with US equipment anywhere in the world. China has called the US a “tech hegemony” and a “major security risk.”

Earlier this week China curbed exports of two key metals used in manufacturing of computer chips, to “safeguard national security and interests.” From next month, special licenses will be required to export gallium and germanium from China, the world’s biggest producer of the metals.

The US is home to some of the world’s leading semiconductor chip manufacturers, such as Intel and Nvidia.

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