U.S. Considers Tightening Restrictions on China's Access to Cloud-Based Technologies
Summary:
U.S. undersecretary of commerce for industry and security, Alan Estevez, recently suggested that America might ramp up restrictions on China's access to U.S. cloud-based technologies. This follows similar restrictions already imposed on AI chips. The move aims to control the use of AI in important sectors such as military logistics and electronic warfare. The U.S. is also strengthening export controls on AI chips following tensions with China, which may invariably impact U.S. and Chinese chip manufacturers.
Alan Estevez, U.S. undersecretary of commerce for industry and security, has informed journalists at a Tokyo event that the U.S. is considering limiting Chinese access to American cloud-based technologies. At the Mount Fuji Dialogue policy forum on October 21, Estevez implied that China's access to cloud technology could experience similar restrictions as previously posed on artificial intelligence (AI) chips. Cloud technology and AI are around us extensively, said Estevez. "The concern is ... AI could potentially direct military logistics and military radar in the future. Consequently, electronic warfare capabilities could significantly advance. Hence, we aim to keep its usage under control," he further explained. As stated by Cointelegraph, the Bureau of Industry and Security from the United States Department of Commerce confirmed stronger export controls on AI chips via a memo released on October 17. The updated rules necessitate a global licensing requirement for exporting regulated chips to any country under U.S. embargo, including China. Following the recent AI chip embargo, Nvidia, a leading U.S. market player, saw its stock dip nearly 5%, while Chinese chip manufacturers are expected to gain momentum. However, it remains uncertain if a similar ban on accessing cloud computing technology will be implemented by U.S. policymakers. The intricacies of imposing such a ban would be complex due to the non-physical export nature of cloud-based services. Current tensions surrounding export restriction discussions could escalate due to recent incidents involving blockades from Chinese coast guard vessels on U.S. allied ships in the Philippines. A "minor collision" happened on October 22, as reported by Reuters, when a Chinese coast guard ship attempted to blockade a Philippine supply vessel from reaching its destination. As a response, the U.S. has reiterated its commitment to guard Philippine vessels "across the South China sea.
Published At
10/23/2023 4:35:15 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.