According to a Tuesday report, the Biden administration is considering introducing a latest rule that will prevent Chinese firms from using cloud computing services equivalent to those offered by US tech giants Amazon and Microsoft.
Under a possible rule, US firms might be required to seek government approval before offering their cloud services that use advanced artificial intelligence computer chips to Chinese customers, The Wall Street Journal reportedciting people conversant in the matter.
According to the report, the proposal would effectively close a loophole that will allow Chinese AI firms to use high-powered computer chips through cloud services, despite export restrictions designed to limit their access.
The Commerce Department is due to take note of the restrictions in the approaching weeks by extending semiconductor export limits to China that were first imposed last October, the report added.
The main points of the policy have emerged as US and Chinese officials engage in a campaign to limit each country’s access to rare computer chips and other key elements of the tech supply chain.
The Commerce Department declined to comment on the journal’s report.
Amazon and Microsoft representatives couldn’t be contacted immediately.
Treasury Secretary Janet Yellen embarks on a closely watched trip to Beijing on Thursday to resume economic talks between the 2 powers.
“While in Beijing, Secretary Yellen will probably be speaking with [People’s Republic of China] officials how necessary it’s that our countries – because the world’s two largest economies – manage our relationships responsibly, communicate directly on problems with concern and work together to address global challenges.
Earlier this week, China said it might restrict exports of key metals utilized in semiconductor production.
Just a few days earlier, The Journal reported that the Biden administration would block shipments of chips made by Nvidia and other leading firms to Chinese customers as early as July.
Amazon Web Services and Microsoft Azure are the 2 largest cloud providers when it comes to market share.
Each company now has customers in China, where it competes with domestic tech giant Alibaba.