Title: US Aims to Limit China’s Cloud Access to AWS, Azure, and More
The ongoing battle between the United States and China has taken a new turn as the Biden administration prepares to restrict China’s access to cloud computing services. This move comes in response to a workaround adopted by Chinese companies, enabling them to rent cloud compute instances and bypass US-imposed bans on chips, often at lower costs.
According to the Wall Street Journal, the proposed plan would require cloud computing companies to obtain government approval before offering their services to Chinese customers. Both countries possess some of the world’s most powerful hardware, which has become crucial as global customers increasingly seek to develop large-scale models and other artificial intelligence workloads.
To hinder each other’s access to advanced computing capabilities, the US and China have implemented various sanctions and rules aimed at limiting the supply of crucial computing elements. With the US having already banned the export of AI chips to China, this new development essentially prohibits China from utilizing any US technology for AI tool development.
Although the ban is intended to favor the US, the battle between the two nations is undeniably two-sided. China has responded in kind by imposing restrictions on the export of specific materials used in chip manufacturing, as well as some chips themselves. Consequently, certain customers of US company Micron have been adversely affected by China’s retaliation.
While the US Department of Commerce has yet to provide any official statement concerning the potential ban, sources familiar with the matter suggest that changes in the way US cloud companies interact with Chinese customers could be implemented within weeks.
In conclusion, the US seeks to limit China’s access to major cloud computing services such as AWS and Azure in an effort to counter the workaround Chinese companies have been exploiting to overcome imposed chip bans. This development, if implemented, will significantly curtail China’s ability to leverage US technology for AI development. On the other hand, China has responded by imposing its own restrictions, escalating the two nations’ battle for control over advanced computing capabilities.
