US to impose restrictions on Chinese companies' access to cloud computing services

Washington: The US Department of Commerce is set to introduce new measures that would restrict Chinese companies' access to cloud computing services provided by US-based providers, said sources familiar with the matter.

According to a report in the Wall Street Journal, the proposed rule, if adopted, would require leading US cloud-service providers like Amazon and Microsoft to obtain permission from the US government before offering cloud computing services to Chinese customers that utilise advanced artificial intelligence chips. This move is part of an expansion of the semiconductor export control policy, initially introduced in October 2022.

The anticipated implementation of this restriction by the US Department of Commerce is expected to take place in the coming weeks. However, there has been no immediate response from the Commerce Department, Microsoft, or Amazon regarding the matter.

In response to the ongoing dispute with the United States over access to high-tech microchips, China announced on Monday its plans to regulate the export of certain metals commonly used in the semiconductor industry, reported Reuters. This decision necessitates exporters seeking permission to ship specific gallium and germanium products, as China aims to safeguard its national security and interests.

The developments highlight the escalating tensions between the US and China, with each country imposing restrictions and regulations in strategic sectors such as cloud computing and semiconductor exports.

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