The US plans to limit China’s access to cloud computing services.

According to a report in The Wall Street Journal, officials in the United States are considering restricting China’s access to cloud computing services in order to protect the country’s advanced technology.

The Biden Administration has proposed adding controls to limit the access Chinese companies have to U.S.-based cloud computing services, such as Amazon Web Services (AWS) and Microsoft. Providers, including those mentioned above, would need government approval before providing services that use powerful artificial intelligence (AI) chips to Chinese clients.

This move aims to close a loophole in existing sanctions on chip exports, as analysts suspect Chinese companies have been able to bypass restrictions by utilizing cloud services. Chinese customers could potentially access advanced computing capabilities without needing to purchase sanctioned chips like Nvidia’s A100 chips, which are commonly used in AI development.

The Commerce Department is expected to announce these new measures in the coming weeks. Cointelegraph has reached out to Google Cloud and AWS for comment but has not yet received a response.

In October 2022, the U.S. imposed initial sanctions on Chinese access to semiconductor chips to slow down industry advancement abroad. These regulations limited Chinese developers’ access to more advanced chips on the market.

On June 28, the administration announced it was considering tightening these measures further by restricting the computing power of exportable chips. In response, the Chinese government announced plans to implement controls on the exports of gallium and germanium products, which are crucial for producing high-caliber semiconductors used in AI development.

China is one of the world’s leading producers of gallium and germanium, so limited access to these metals could potentially have a negative impact on the chip manufacturing industry.