In an effort to address a gap in chip export controls and potentially intensify the ongoing retaliatory battle with Beijing, the Biden administration is planning to limit Chinese companies’ usage of American cloud-computing services. This move has the potential to add further tension to the relationship between these global economic giants.
If implemented, the proposed regulation would likely mandate that U.S. cloud-service providers, such as Amazon.com and Microsoft, obtain permission from the U.S. government before offering cloud-computing services to Chinese customers that utilize advanced artificial-intelligence chips. This requirement was outlined in the report.