Chinese firms bypass US export restrictions on AI chips using AWS cloud

“Yes, this is a loophole that allows Chinese companies to access restricted AI technologies,” said Pareekh Jain, CEO of Pareekh Consulting. “The current business model, where cloud services are sold through resellers or intermediaries, complicates efforts to restrict and monitor end users. In the long term, as regulations on cloud services tighten, more business will likely flow through resellers in China, shifting the burden of compliance from providers like AWS to these intermediaries.”

In response to such concerns, legislation was introduced in Congress in April to give the US Commerce Department authority to regulate remote access to US technology. The department has also proposed new rules that would require cloud services to verify users of large AI models and report to regulators when these models are used for potentially malicious activities.

An AWS spokesperson, quoted in the report said, “We are aware the commerce department is considering new regulations, and we comply with all applicable laws in the countries in which we operate.” As Amazon continues to offer advanced AI chips and models, such as Anthropic’s Claude, through its cloud services, it faces scrutiny and regulatory challenges. The news agency claimed that following its inquiries, Amazon updated its Chinese-language posts to clarify the availability of some services and remo