Chinese firms are gaining access to top US technology and AI via AWS

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Export bans don't seem to be working

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State-linked Chinese entities are leveraging cloud services from Amazon Web Services (AWS) and its competitors in order to access advanced US chips and AI capabilities that have been restricted in the nation.

By accessing overseas technologies via cloud computing services, Chinese organizations can circumvent US export controls to obtain advanced technology.

The news comes after around two years of US government efforts to impose strict regulations to limit the export of high-end AI chips to China in an effort to hinder the country’s military’s technological advancements.

China is still accessing banned US tech

Anti-China regulations imposed by the US do not prevent the country from accessing such technology through cloud services, but rather the direct export or transfer of tangible goods, software or technology, therefore the country can maintain its access.

A Reuters investigation of more than 50 tender documents posted to Chinese public database over the past year found that at least 11 Chinese entities sought access to restricted US technologies or cloud services – four of which named AWS as their cloud service provider, although they accessed the service through local intermediaries.

One such example is Shenzhen University’s 200,000 yuan ($28,000) payment to access cloud servers powered by Nvidia A100 and H100 chips, which have been banned for export to China.

AWS, which accounts for around one-third of the global cloud market, or the same as Microsoft and Google combined, states that it complies with all applicable US laws.

Consequentially, the US government appears to be increasingly worried about the loophole, with legislators proposing new measures to regulate remote access to US technologies via cloud services. The effectiveness of current export restrictions is also under fire.

A company spokesperson confirmed in an email to TechRadar Pro: "AWS complies with all applicable US laws, including trade laws, regarding the provision of AWS services inside and outside of China."

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!