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US plans to restrict Chinas access to cloud computing WSJ

Washington is reportedly seeking to enforce chip export control rules

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

The planned rule would likely require US cloud-service providers such as Amazon and Microsoft to seek permission from the government before providing cloud-computing 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, it added.

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

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 anywhere in the world with US equipment. China has called the US a “tech hegemony” and a “major security risk.”

READ MORE: China hits back in semiconductor trade war


Earlier this week China curbed exports of two key metals used in manufacturing of computer chips, to “safeguard national security and interests.” From July, 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.

For more stories on economy & finance visit RT’s business section

July 04, 2023 at 07:10PM


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