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U.S. Looks to Restrict China’s Access to Cloud Computing to Protect Advanced Technology

The Biden administration is preparing to restrict Chinese companies’ access to U.S. cloud-computing services, according to people familiar with the situation, in a move that could further strain relations between the world’s economic superpowers. The new rule, if adopted, would likely require U.S. cloud-service providers such as Amazon.com AMZN -0.11%decrease; red down pointing triangle and Microsoft MSFT -0.75%decrease; red down pointing triangle to seek U.S. government permission before they provide cloud-computing services that use advanced artificial-intelligence chips to Chinese customers, the people said. The Biden administration’s move would follow other recent measures as Washington and Beijing wage a high-stakes conflict over access to the supply chain for the world’s most advanced technology. Beijing Monday announced export restrictions on metals used in advanced chip manufacturing, days ahead of a visit to China by Treasury Secretary Janet Yellen.

Full exclusive : U.S. plans to require AWS and other cloud providers to seek permission before providing services that use advanced AI chips to Chinese customers.