Bloomberg News reports that the Biden administration plans to force a new rule that would not allow Chinese companies to use cloud computing services. These include services that are offered by tech stalwarts like Microsoft and Amazon. The same was announced on Tuesday in a report.
What does the potential rule do?
As per the potential norm, the US companies might have to get approval from the government before they offer their cloud services to China-based consumers. The cloud services provided by these companies use advanced artificial intelligence computer chips. The same was revealed by people that are familiar with the matter.
Following the implementation of the potential rule would do away with a loophole that would have helped the Chinese artificial intelligence companies to use computer chips through cloud-based services. There are restrictions in place related to export. Hence the move so that the move of the Chinese firms could be arrested.
When is the potential rule to be implemented?
The Commerce Department will include the same restrictions in the coming weeks as it will further broaden the limits export of semiconductors to China. They imposed thin October last year.
When were the details released?
Detailed information about the curb was available and surfaced and became evident when the officials of both countries were engaged in campaigns. It emerged limits and restricts the use of artificial intelligence services and chips. Restrictions also include limitations on essential elements involved in the tech supply chain. The Commerce Department refused to comment.
Bloomberg News reports that Janet Yellen, the Treasury Secretary, is supposed to embark on a trip to Beijing. They will closely monitor this trip on Thursday for resuming economic discussion between the two countries.
At the start of this week, China revealed that it was planning to curtail exports of the crucial metals used to produce semiconductors.
