Chinese entities with ties to the state are using cloud services from Amazon Web Services (AWS) and its competitors to gain access to advanced American chips and AI capabilities that are restricted in the country.
By accessing foreign technologies through cloud computing services, Chinese organizations can circumvent US export controls and obtain advanced technology.
The news comes after nearly two years of U.S. government efforts to impose strict regulations to limit the export of advanced AI chips to China, in a bid to hamper the technological advancements of the Chinese military.
China still has access to banned US technology
The anti-China regulations imposed by the US do not prevent the country from accessing such technology via cloud services. However, the country can prevent the direct export or transfer of tangible goods, software or technology. Therefore, the country can maintain its access.
A Reuters An investigation into more than 50 tender documents posted to China’s public database over the past year has revealed that at least 11 Chinese entities sought access to restricted U.S. technologies or cloud services. Four of them listed AWS as their cloud service provider, even though they obtained access to the service through local intermediaries.
An example of this is the payment of 200,000 yuan (US$28,000) to Shenzhen University for access to cloud servers with Nvidia A100 and H100 chips. These servers are not allowed to be exported to China.
AWS, which represents about a third of the global cloud market, as much as Microsoft and Google combined, says it complies with all applicable U.S. laws.
As a result, the U.S. government appears to be growing increasingly concerned about the breach, with lawmakers proposing new measures to regulate remote access to U.S. technologies via cloud services. The effectiveness of current export restrictions has also come under fire.
Ny Breaking has contacted Amazon for comment.