The US administration is preparing to restrict Chinese companies’ access to American cloud computing services, the Wall Street Journal reported on Tuesday, citing people familiar with the situation.

The new rule, if adopted, would likely require US cloud service providers such as Amazon Web Services and Microsoft to seek US government permission before they provide cloud computing services that use advanced artificial intelligence chips to Chinese customers, the newspaper said.

The US department of commerce is expected to implement the restriction in coming weeks as part of an expansion of its semiconductor export control policy introduced in October, the it said.

The commerce department, Microsoft and Amazon did not immediately respond to a request for comment outside business hours.

China said on Monday it would control exports of some metals widely used in the semiconductor industry, its latest response in an escalating dispute with the US over access to hi-tech microchips.

The controls on metals, which China said were aimed at protecting national security and its interests, will require exporters to seek permission to ship some gallium and germanium products. — Jahnavi Nidumolu, (c) 2023 Reuters