US aims to restrict China's cloud computing development, close AI chip loopholes: report

The US and China are locked in a back-and-forth feud over accessibility to cutting edge technologies such as chips

President Biden's administration is planning to place restrictions on Chinese companies regarding access to cloud-computing services.

The proposed policy would require cloud-computing service providers using advanced artificial intelligence chips to seek approval from the U.S. government before opening access to Chinese consumers, according to a report from The Wall Street Journal. 

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Computer technology

Semiconductor chips are seen on a circuit board of a computer. (Reuters/Florence Lo/Illustration / Reuters Photos)

The restrictions would close a loophole that has allowed the Chinese Communist Party use of cutting-edge artificial intelligence chips through cloud computing services.

By using U.S. cloud computing services, Chinese consumers are capable of bypassing export controls on American technology, such as chips. 

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semiconductor factory china

Employees operate machines at a dust-free workshop of a semiconductor factory on March 1, 2023 in Siyang County, Suqian City, Jiangsu Province of China. (Photo by VCG/VCG via Getty Images)

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

Fox News Digital reached out to the Department of Commerce for clarification but did not receive an immediate response.

US WEIGHS NEW RESTRICTIONS ON AI CHIP EXPORTS TO CHINA: REPORT

China and the U.S. are currently locked in a back-and-forth feud over access to the latest computing technologies, such as artificial intelligence.

Beginning Aug. 1, China will be implementing export restrictions on metals and materials derived from gallium and germanium. The two minerals are crucial to the production of technologies such as semiconductors and solar cells.

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SHANGHAI CHIP

Processors and memory chips displayed 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 largest U.S.-based chipmaker, Micron Technology.