Report: US Looks to Restrict Chinese Companies Access to Cloud Technologies

The report comes as US Treasury Secretary Janet Yellen is preparing to leave for China

The US is looking to restrict Chinese companies’ access to cloud-computing technology in a move that would further strain ties between Washington and Beijing, The Wall Street Journal reported on Tuesday.

The Biden administration has significantly escalated the trade war with China by imposing sanctions last year to restrict the export of advanced semiconductors and semiconductor manufacturing equipment to China. The US has also pressured other countries that export the technology to impose similar measures.

The Journal report said the new rule would require US cloud companies to seek permission before providing cloud-computing services that use advanced artificial intelligence chips to Chinese customers. The idea is to prevent companies in China from gaining access to computing capabilities via cloud services that use the advanced semiconductors the US put export controls on.

The report comes as US Treasury Secretary Janet Yellen is preparing to visit China, where she is expected to arrive Thursday. According to The New York Times, Treasury officials are downplaying any expectations for major breakthroughs and say the purpose of the visit is just to improve communication.

The plans for the cloud restrictions demonstrate that economic tensions between the two powers will not ease anytime soon. The Biden administration is also trying to work out a mechanism to screen US investments in China, but it is facing some pushback on Wall Street and in Congress.

China has taken measures in response to the US semiconductor sanctions. Most recently, Beijing announced Monday that it would restrict the export of two metals crucial for making semiconductors, gallium and germanium. Experts told The South China Morning Post that the new restrictions are meant as a counter to the US semiconductor sanctions and could be used as a bargaining chip in negotiations with US officials.

Author: Dave DeCamp

Dave DeCamp is the news editor of Antiwar.com, follow him on Twitter @decampdave.