US to curb China’s cloud computing development, plug gaps in AI chips: report

Check out what’s happening on FoxBusiness.com

President Biden’s administration plans to restrict Chinese companies’ access to cloud computing services.

According to a Wall Street Journal report, the proposed policy would require cloud computing service providers that use advanced artificial intelligence chips to obtain US government approval before opening access to Chinese consumers.

US COMPANIES OPERATING IN CHINA FACE NEW RISKS UNDER UPDATED PRC LAW, SECRET OFFICERS SAY

Semiconductor chips can be seen on a circuit board of a computer. (Portal/Florence Lo/Illustration / Portal photos)

The restrictions would fill a loophole that has allowed the Chinese Communist Party to leverage cutting-edge artificial intelligence chips via cloud computing services.

By using US cloud computing services, Chinese consumers are able to circumvent export controls on US technology such as chips.

Threatened with shortages, electric car makers are vying for the supply of lithium for batteries

Employees operate machines at a dust-free workshop of a semiconductor factory in Siyang county, Suqian city, east China’s Jiangsu province, March 1, 2023. (Photo by VCG/VCG via Getty Images)

The Department of Commerce is expected to implement the restrictions over the next few weeks.

Fox News Digital reached out to the Department of Commerce for clarification, but received no immediate response.

US mulls new restrictions on AI chip exports to China: report

China and the US are currently in a dispute over access to the latest computing technologies such as artificial intelligence.

From August 1, China will introduce export restrictions on gallium- and germanium-based metals and materials. The two minerals are vital in the manufacture of technologies such as semiconductors and solar cells.

GET FOX BUSINESS ON THE GO by CLICK HERE

Processors and memory chips are on display at the Advanced Micro Devices Inc. booth at the MWC Shanghai event in Shanghai. (Photographer: Qilai Shen/Bloomberg via Getty Images)

China has also banned domestic firms from doing business with the US’s largest chipmaker, Micron Technology.