Chinese government agencies are using cloud services from Amazon Web Services (AWS) and its competitors to access advanced U.S. chips and AI capabilities that are restricted at home.
By accessing overseas technology through cloud computing services, Chinese organizations can circumvent U.S. export controls and obtain advanced technology.
The news comes after nearly two years of efforts by the U.S. government to impose tougher controls limiting exports of high-performance AI chips to China in an effort to thwart technological advances for the Chinese military.
China still has access to banned U.S. technology
China can maintain its access because the anti-China restrictions imposed by the United States do not prohibit China from accessing such technology through cloud services, but rather prohibit the direct export or transfer of tangible goods, software and technology.
A Reuters review of more than 50 bidding documents posted in a public Chinese database over the past year found that at least 11 Chinese companies were seeking access to restricted U.S. technology or cloud services, including four that named AWS as their cloud-services provider but accessed the services through local intermediaries.
One example is the 200,000 yuan ($28,000) paid by Shenzhen University for access to cloud servers equipped with Nvidia A100 and H100 chips, which are banned from being exported to China.
AWS, which controls about a third of the global cloud market and is as big as Microsoft and Google combined, says it complies with all applicable U.S. laws.
As a result, the US government appears increasingly concerned about this loophole, with lawmakers proposing new measures to restrict remote access to US technology via cloud services. The effectiveness of current export controls has also been criticized.
A company spokesperson confirmed in an email to TechRadar Pro: “AWS complies with all applicable U.S. laws, including trade laws, with respect to the provision of AWS services inside and outside of China.”
