• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Chinese Firms Gaining Access to Advanced US Technologies via Cloud Services

user avatar

by Giorgi Kostiuk

a year ago


  1. Amazon is Not Breaking the Law
  2. Chinese Firms Not Getting Enough from Local Suppliers
  3. US Worries About Cloud Computing Loopholes

  4. Chinese companies are finding ways to circumvent restrictions on access to advanced US technologies by using cloud services such as Amazon Web Services (AWS).

    Amazon is Not Breaking the Law

    Tender documents seen by Reuters revealed the extent to which Chinese companies have been resourceful in accessing high-end computing power and generative AI models. One strategy they have used is through AWS. For Amazon, providing those chips via cloud services does not violate current laws, as they are explicit only on the export or transfer of products, software, or technology. Reuters reviewed over 50 documents from an open Chinese database, which showed that over 11 Chinese companies gained access to restricted US technologies or cloud services. Out of these, four companies explicitly indicated their involvement with Amazon, stating that they accessed the facilities through Chinese intermediaries rather than directly from AWS.

    AWS complies with all applicable US laws, including trade laws, regarding the provision of AWS services inside and outside China.Amazon spokesperson

    Chinese Firms Not Getting Enough from Local Suppliers

    A March tender document reveals that Shenzhen University spent over 200,000 Yuan (around $27,996) on an AWS account to access cloud servers powered by Nvidia A100 and H100 chips. The documents show that the tertiary institution accessed the services through a middleman, Yunda Technology Ltd Co. The US had imposed restrictions on the trade of two Nvidia chips used to power large language models like OpenAI’s ChatGPT. Yunda Technology and Shenzhen University did not respond to questions sent to them, while Nvidia declined to comment on Shenzhen University’s spending or other Chinese companies’ transactions. A research institute, Zhejiang Lab, also stated in an April document that it planned to spend over 184,000 Yuan to acquire AWS cloud computing services since its AI models couldn’t get adequate computing power from local supplier Alibaba. However, a Zhejiang Lab representative said they did not complete the acquisition and did not respond to questions regarding their choice or how they met their LLM processing power criteria.

    US Worries About Cloud Computing Loopholes

    The US government is currently working to strengthen restrictions to limit cloud access. Michael McCaul, the US House of Representatives Foreign Affairs Committee chair, said that they were concerned about foreign entities accessing advanced US computing capabilities through the cloud. In April, the Commerce Department was granted permission to introduce laws that control the remote access of US technology. However, it remains uncertain whether the law was passed. According to a Commerce Department spokesperson, they are working closely with Congress and seeking additional resources to strengthen existing controls that restrict PRC companies from accessing advanced AI chips through remote cloud computing access. In January, the Commerce Department also pushed for a law that would require US cloud services to verify large AI model users and report to regulators when using US cloud computing to train massive AI models capable of “malicious cyber-enabled activities.”

    This loophole has been a concern of mine for years and we are long overdue to address it.Michael McCaul

    The demand for cloud services by Chinese firms continues to grow despite tightening restrictions from the US. How the situation with regulation and access to advanced technologies will develop remains to be seen.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Kaspa KAS Price Faces Critical Support Level

chest

The KAS price is currently consolidating just above the 0.0043-0.0044 support zone, which has held multiple times over the past two weeks.

user avatarKaterina Papadopoulou

Kaspa KAS Price Stabilizes Amid Development Roadmap Focus

chest

Kaspa KAS is currently holding around the 0.0044 level, demonstrating resilience against selling pressure despite recent market challenges.

user avatarMaya Lundqvist

Historical Debt Patterns Suggest Potential Market Corrections Ahead

chest

Recent data indicates that US margin debt as a percentage of the M2 money supply has reached alarming levels not seen since the financial peaks preceding the 2000 dotcom bubble and the 2007 crisis.

user avatarLi Weicheng

Cheems Highlights Cultural Relevance in Crypto Projects

chest

Cheems is emerging as a key player in the crypto market by emphasizing cultural relevance and community engagement.

user avatarLeo van der Veen

Crypto Market Shifts Focus to New Projects

chest

As the crypto market experiences uncertainty, traders are increasingly turning their attention to new projects, moving away from established assets towards innovative initiatives.

user avatarAisha Farooq

Growing Competition in the SUI ETF Market

chest

Bitwise is competing with other asset managers like Grayscale and 21Shares to launch the first approved spot SUI ETF in the US market, highlighting increasing competition.

user avatarTenzin Dorje

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.