WSJ: US to restrict exports of cloud services to China

US President Joe Biden's administration is preparing to restrict Chinese companies' access to US cloud computing services.

Here's What We Know

Under the proposed new rule, US cloud service providers such as Amazon and Microsoft will have to seek permission from the US government to provide services to Chinese customers. This also applies to artificial intelligence computing.

The new restriction is seen as a means of closing a significant loophole. Analysts have warned that Chinese AI companies could circumvent current export control rules by using cloud-based services.

These services allow customers to access computing power without purchasing advanced hardware, including chips from the control list, such as the Nvidia A100.

The US Department of Commerce is expected to announce the measures in the coming weeks as part of an extension of the semiconductor export control policy introduced in October.

Go Deeper:

• The Biden administration is considering new restrictions on exports of artificial intelligence chips to the PRC.
• The Netherlands will restrict exports of chipmaking equipment under US pressure.
• China has restricted exports of key materials for computer chips.

Source: The Wall Street Journal.