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

The Department of Commerce is expected to roll out sweeping restrictions on cloud computing services in Chinese markets, according to a report from The Wall Street Journal.

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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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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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.

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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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China has also banned domestic firms from doing business with the largest U.S.-based chipmaker, Micron Technology.

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