US wants to limit China’s access to cloud services: report
Biden Administration Considers Blocking Chinese Firms From US Cloud Services
The Biden administration is reportedly considering a new rule that would prevent Chinese firms from accessing cloud-computing services provided by US tech giants Amazon and Microsoft. According to sources familiar with the matter, the proposed rule would require US companies to obtain government approval before offering cloud services, that utilize advanced artificial intelligence (AI) computer chips, to customers based in China. The aim is to close a loophole that allowed Chinese AI companies to access high-powered computer chips through cloud services, despite export restrictions designed to limit their usage. The new restrictions are expected to be included by the Commerce Department in the coming weeks, as part of wider limits on semiconductor exports to China that were initially introduced in October 2020.
The implementation of this policy comes at a time when US and Chinese officials are engaged in a battle to restrict each country’s access to critical computer chips and other key components of the technology supply chain. The Commerce Department has declined to comment on the latest report from the Wall Street Journal, while representatives from Amazon and Microsoft have not yet responded to requests for comment.
Treasury Secretary Janet Yellen is set to embark on a significant trip to Beijing on Thursday to restart economic talks between the two global powers. The objective of the visit is to facilitate direct communication between US and Chinese officials and address areas of concern, as well as to responsibly manage the relationship between the world’s two largest economies. This trip comes just days after China announced plans to restrict exports of vital metals used in semiconductor production.
Last week, the Wall Street Journal reported that the Biden administration intends to block shipments of chips from leading firms like Nvidia to Chinese customers, potentially starting as early as July. Amazon Web Services and Microsoft’s Azure are currently the two dominant players in the global cloud market. Both companies have a presence and compete with domestic tech giant Alibaba in the Chinese market.
FAQs:
1. What is the proposed rule by the Biden administration?
The proposed rule aims to block Chinese firms from using cloud-computing services offered by US tech giants Amazon and Microsoft. It would require US companies to seek government approval before providing cloud services that utilize advanced AI computer chips to customers in China.
2. Why is the rule being considered?
The rule is being considered to close a loophole that allows Chinese AI firms to access high-powered computer chips through cloud services, despite existing export restrictions meant to limit their usage.
3. When will the rule be implemented?
The Commerce Department is expected to include the restrictions in the coming weeks, as part of broader limits on semiconductor exports to China that were first imposed in October 2020.
4. What is the purpose of Treasury Secretary Janet Yellen’s trip to Beijing?
Treasury Secretary Janet Yellen’s trip to Beijing is aimed at restarting economic talks between the US and China. It seeks to manage the relationship between the world’s two largest economies, address areas of concern, and promote direct communication.
5. How are US and Chinese officials currently engaged in a battle?
US and Chinese officials are engaged in a battle to restrict each country’s access to critical computer chips and other key components of the technology supply chain. Both countries have imposed limitations and export restrictions to protect their respective interests.
6. How will this policy affect cloud providers like Amazon and Microsoft?
The policy could impact cloud providers like Amazon’s Amazon Web Services and Microsoft’s Azure. These companies currently have customers in China and compete with domestic tech giant Alibaba. The restrictions on cloud services could limit their operations and market share in the Chinese market.
Note: The answers provided in the FAQs section are hypothetical and based on the information presented in the article.
Report: US Seeking to Restrict China’s Use of Cloud Services
The Biden administration is reportedly considering a new rule that would prevent Chinese firms from utilizing cloud-computing services offered by major US tech companies like Amazon and Microsoft. According to the Wall Street Journal, sources familiar with the matter stated that under the proposed rule, US companies may be required to obtain government approval before providing advanced artificial intelligence (AI) cloud services to customers based in China. This move aims to close a loophole that would have allowed Chinese AI firms to access high-powered computer chips through cloud services, bypassing export restrictions meant to limit their accessibility. It is expected that the Commerce Department will include these restrictions in the coming weeks as part of its existing limitations on semiconductor exports to China, which were initially imposed last October. Amazon, currently the world’s largest cloud provider, has yet to respond to the report and representatives from Microsoft could not be reached for comment.
News of this potential policy coincides with ongoing efforts by US and Chinese officials to restrict access to scarce computer chips and other essential components of the global tech supply chain. The Commerce Department declined to comment on the Journal’s report, while Treasury Secretary Janet Yellen is scheduled to embark on a significant trip to Beijing to restart economic talks between the two nations. The Treasury Department emphasized the importance of responsible management in the relationship between the world’s two largest economies, expressing a desire to address areas of concern and collaborate on global challenges during Yellen’s visit. China recently announced its plans to curb exports of crucial metals used in semiconductor production.
Earlier this week, it was also reported by the Journal that the Biden administration intends to halt shipments of chips manufactured by Nvidia and other major companies to Chinese customers as early as July. Market leaders Amazon Web Services and Microsoft’s Azure currently dominate the cloud service provider space, with both companies having a presence in China where they compete with domestic tech giant Alibaba. As this story develops, we will continue to provide comprehensive coverage while staying focused on the topic at hand.