"US Considers Access Restrictions on Chinese Cloud Computing Services"

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The Biden administration in the United States is reportedly considering measures to restrict China's access to "cloud computing services," which had been pointed out as a loophole in semiconductor export controls to China, according to sources cited by the Wall Street Journal (WSJ) on the 3rd (local time).

If implemented, American cloud service providers such as Amazon and Microsoft will find it difficult to offer cloud computing services utilizing cutting-edge artificial intelligence (AI) semiconductors to Chinese clients. Although the measure is not expected to explicitly name China as a targeted country, providers will need to obtain U.S. government approval before offering services, effectively blocking China's access.

[Image source=Reuters Yonhap News]

This measure is being introduced as part of the Biden administration's semiconductor control policies toward China. In October last year, the U.S. imposed semiconductor export controls to China, including restrictions on exporting semiconductor manufacturing equipment. Additionally, U.S. semiconductor company Nvidia was prohibited from exporting advanced AI semiconductors to China. Consequently, Nvidia has been supplying lower-spec A800 and H800 chips to China instead of the advanced A100 and H100 models.

National security analysts have warned that Chinese AI companies have been circumventing current semiconductor export controls by using U.S. cloud services. Even if Chinese companies cannot directly obtain Nvidia's A100 chips, they can access powerful computing capabilities by using cloud services built on those chips. This measure aims to close the loophole that emerged during semiconductor export controls targeting China.

Emily Weinstein, a researcher at the Center for Security and Emerging Technology (CSET) at Georgetown University, explained, "Any Chinese company wanting access to Nvidia's A100 can get it through any cloud service provider." She added that instead of blacklisting specific semiconductors used in cloud services, the Biden administration might restrict U.S. cloud providers from offering services related to military, security, or intelligence users in China or other countries of concern.

Sources indicated that as the U.S. Department of Commerce expands semiconductor export controls targeting China, it is expected to announce such measures within weeks. Earlier, the WSJ reported at the end of last month that the Biden administration might broaden export restrictions on AI semiconductors to China, including requiring government approval for exporting lower-spec AI chips like the A800.

In response to the tightening of U.S. export controls, China has launched countermeasures. Ahead of U.S. Treasury Secretary Janet Yellen's visit to China from the 6th to the 9th, China announced the day before that it will control exports of rare metals gallium and germanium, essential for semiconductors, starting from the 1st of next month, requiring Chinese government approval for exports. Gallium and germanium are critical metals used in integrated circuits, light-emitting diodes (LEDs), and optical fibers, and China effectively monopolizes their production. In late May, China also imposed sanctions banning the use of products from U.S. memory semiconductor company Micron.

As the U.S. and China escalate export control measures against each other, tensions are rising, drawing attention to what outcomes Treasury Secretary Yellen's visit?considered the U.S.'s "economic commander"?might achieve. The timing of China's gallium and germanium export controls, announced three days before Yellen's visit, is seen as a strategic move to gain leverage in negotiations.

Meanwhile, the Netherlands, which joined the semiconductor control measures targeting China at the U.S.'s request, announced at the end of last month that it will require government export permits for certain semiconductor production equipment shipments starting September 1. Japan also mandated government approval for exports of 23 advanced semiconductor-related items, including lithography equipment and cleaning/inspection devices, beginning on the 23rd.

This content was produced with the assistance of AI translation services.