The Biden administration is reportedly developing a plan to restrict China’s access to cloud computing services as part of the ongoing battle between the two countries. The move is a response to Chinese companies finding a workaround to bypass US bans on chips by renting cloud computing instances, often at a lower cost. Under the new rule, cloud computing companies would need government approval before serving Chinese customers, effectively limiting China’s ability to use US technology for developing artificial intelligence tools.
The Importance of Cloud Computing for Both Countries: Both the US and China have access to powerful hardware, which plays a crucial role as customers worldwide seek to develop large models and artificial intelligence workloads. Cloud computing services provide the infrastructure necessary for these endeavours, making the restrictions on access significant for both countries.
US Efforts to Limit Chinese Access to Technology: In an attempt to prevent China from gaining access to advanced capabilities, the US has already banned the export of AI chips to China. This proposed restriction on cloud computing services would further hinder China’s ability to use US technology for AI development. The US Department of Commerce has not officially commented on the potential ban, but sources suggest that the new rules could be implemented within weeks.
China’s Response: China has responded to US actions with its own measures. The country has banned the export of certain chip-making materials and chips themselves, leading to some US Micron customers being affected. The battle between the US and China is characterized by reciprocal actions and efforts to limit each other’s access to crucial technologies.
The US government is reportedly considering a plan to restrict China’s access to cloud computing services as part of its ongoing efforts to limit China’s access to advanced technologies. By requiring government approval for cloud computing companies serving Chinese customers, the US aims to prevent China from using US technology for AI development. However, this move is likely to be met with countermeasures from China, reflecting the two-sided nature of the ongoing technology battle between the two countries.
