Science & Technology

US to Curb China Access to Cloud Services

The United States is currently preparing to impose restrictions on access to cloud computing services against Chinese companies.

US to Curb China Access to Cloud Services

The relevant information is reported by the media with reference to people who are aware of these plans of the American authorities, which have not yet been announced in the public space. Insiders say that a potential restriction, among other things, concerns access to cloud computing services that belong to Amazon and Microsoft.

The information available to the media says that Washington is currently considering the possibility of imposing an obligation on cloud providers to request government permission before engaging with Chinese companies that use such digital platforms to train artificial intelligence models.

Microsoft Azure and Amazon Web Services are currently the leaders in the global provision of Internet computing. These giants of the technology industry in China compete with companies such as, for example, Alibaba Group Holding through local data center partners that are affiliated with the state.

The White House, in response to a media request about the possible introduction of a new restriction on Chinese firms, did not provide any comments. The US Department of Commerce also did not provide any information about this.

The Joe Biden administration is currently exploring options for tightening export controls, which was announced last October. A system of appropriate measures was created to limit the supply of some artificial intelligence chips to China. In this way, the United States intends to limit the development of the Chinese technology sector. In the current realities, the availability of advanced technologies is a condition for a successful economic future for the state and a kind of basis for strengthening positions in the geopolitical space.

Restricting the access of Chinese artificial intelligence developers to cloud computing services is part of a comprehensive effort to limit China’s technological potential.

There is also currently insider information according to which in July the US Department of Commerce will review the export control system in order to tighten it by complicating the process of selling some chips to the Chinese side without a license. This expected decision is partly a legal response to the creation of the A800 chip, which Nvidia developed in order to circumvent restrictions on the supply of other types of similar products to the Chinese market.

The technological confrontation between the United States and China, the fact of which cannot be denied due to the maximum evidence of its existence, is moving in the direction of strengthening. On Monday, July 3, Beijing announced the introduction of an export control system for metals that are necessary for the production of chips, electric vehicles, and defense industry products. Thus, China has demonstrated that it has the ability to take retaliatory measures against the actions of the United States, Japan, and Europe to curb the development of its technology sector.

As we have reported earlier, Netherlands to Restrict Chip Equipment Exports.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.