The tech trade war between the US and China is escalating again. Biden administration according to The Wall Street Journal proposes restricting Chinese firms’ access to American cloud computing services. This could further worsen the already less than ideal relations between the two countries.
The proposal, which is still under consideration, calls for US cloud service providers obtain a license from the Ministry of Commerce before selling or transferring their services to Chinese firms. This license would only be granted if the department determined that the transaction did not pose a threat to national security.
US-China trade war
The proposal appears to be aimed directly at preventing China from using US cloud services to develop advanced technologies that could be used for military purposes. According to The Wall Street Journal, the Biden administration is especially concerned about China’s progress in the field of artificial intelligence, which has both civilian and military uses.
It is expected that the Ministry of Commerce on the proposal will decide over the coming months. If approved, the proposal would be the latest in a series of measures by the Biden administration to limit China’s access to advanced technology.
Proposed restrictions on China’s access to US cloud services could have a significant impact on both countries. It would make it more difficult for China to develop and implement advanced technologies, which could slow down its economic growth. On the US side, the restrictions could hurt US businesses that sell their cloud services to China.
It’s also worth noting that the restrictions could have a wider impact on the global tech industry. If other countries follow the example of the United States, it could fragment the global cloud services market and make it more difficult for companies operating in this segment to operate cross-border.
An embargo on AI chips is coming
The future of the proposed restrictions is still uncertain. The Ministry of Commerce is still considering the proposal and it is possible that it will reject it. However, if approved, it is likely to face legal challenges from China. The restrictions are a sign of growing tensions between the US and China over technology. With both countries vying for technological dominance, it is likely that we will see more similar measures in the future.
Last week it was revealed that the US government is also considering restrictions against China in the field of chips with artificial intelligence. According to The Wall Street Journal, he is considering restrictions on their export. The aim is to prevent China from gaining ground in artificial intelligence technology that could affect military and economic matters such as facial recognition, autonomous driving and quantum computing.
The sources, who asked not to be named because the matter is classified, said the Commerce Department is working on a plan that would require U.S. firms to obtain a license before they can sell certain types of artificial intelligence chips to China. The plan should also include chips that are made or improved for machine learning.
2023-07-09 12:45:15
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