Chinese entities access banned US AI chips via cloud services
Chinese entities reportedly used Amazon Web Services and other cloud providers to access U.S. AI chips and advanced AI models banned from direct export to China, circumventing restrictions intended to limit Chinese military capabilities. The arrangement exploits a regulatory gap because cloud access is not classified as export under current U.S. law.
What happened
According to Reuters' review of more than 50 tender documents posted on Chinese databases over the past year, at least 11 Chinese entities sought access to restricted U.S. technologies or cloud services, with four explicitly naming Amazon Web Services as a cloud service provider. The entities accessed these services through Chinese intermediary companies rather than directly from AWS.
Shenzhen University spent 200,000 yuan ($27,996) on an AWS account to gain access to cloud servers powered by Nvidia A100 and H100 chips for an unspecified project via intermediary Yunda Technology Ltd Co, according to a March tender document. The U.S. has banned direct exports of these Nvidia chips to China.
Reported impact
The arrangements underscore how U.S. companies are capitalizing on China's growing demand for computing power. AWS also provided access to sophisticated AI models such as Anthropic's Claude, which Chinese entities would not otherwise be able to access.
Index analysis
Providing access to restricted chips or advanced AI models through cloud services is not a violation of U.S. regulations since only exports or transfers of commodities, software or technology are regulated under current rules. The strategy highlights a regulatory loophole that allows Chinese entities to circumvent restrictions intended to limit the Chinese military's technological capabilities.
Governance controls
AWS stated that it "complies with all applicable US laws, including trade laws, regarding the provision of AWS services inside and outside of China." According to reports, new U.S. regulations are being developed to address this loophole.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.