Biden Xi

Biden Administration Plans Clampdown on Chinese Access to US Cloud Computing Services

The Wall Street Journal reported on Tuesday that the Biden administration is gearing up to impose restrictions on Chinese companies’ utilization of American cloud computing services. Citing sources familiar with the matter, the new rule would likely mandate U.S. cloud service providers like Amazon and Microsoft to obtain U.S. government approval before offering cloud computing services to Chinese customers that employ advanced artificial intelligence chips.

According to the newspaper, the U.S. Department of Commerce is set to implement this restriction in the upcoming weeks as an expansion of its semiconductor export control policy initiated in October. As of now, the Commerce Department, Microsoft, and Amazon have not provided immediate comments, as their responses are awaited during business hours.

In response to the escalating dispute with the United States over access to high-tech microchips, China announced on Monday its intention to exert control over the exports of certain metals widely used in the semiconductor industry. According to China, exporters will now need permission before shipping particular gallium and germanium products as a measure to safeguard national security and protect its interests.