Chinese Firms Exploit AWS to Access Advanced US Tech and AI Despite Export Bans

Export restrictions imposed by the US are proving ineffective as state-affiliated Chinese entities continue to leverage cloud services from Amazon Web Services (AWS) and its competitors to access cutting-edge US chips and AI technologies that are officially banned.

By utilizing cloud computing services to tap into overseas technology, Chinese organizations are bypassing US export controls designed to restrict access to advanced tech, particularly AI capabilities critical to military advancements.

Chinese Access to Banned US Technology Persists Despite Regulatory Efforts

After nearly two years of intense efforts by the US government to implement stringent regulations aimed at limiting the export of high-end AI chips to China, it appears these measures are falling short. Chinese entities remain capable of accessing this restricted technology through cloud services, sidestepping the direct export or transfer of physical goods, software, or tech.

A detailed investigation by Reuters, involving the analysis of over 50 tender documents posted on a Chinese public database in the past year, uncovered that at least 11 Chinese entities sought access to restricted US technologies or cloud services. Notably, four of these entities specifically listed AWS as their cloud provider, accessing the service through local intermediaries.

For example, Shenzhen University reportedly paid 200,000 yuan ($28,000) to utilize cloud servers powered by Nvidia A100 and H100 chips, which are prohibited for export to China.

AWS, commanding around one-third of the global cloud market—equivalent to the combined share of Microsoft and Google—asserts that it strictly adheres to all applicable US laws.

US Concerns Mount Over Loopholes in Export Restrictions

The US government is growing increasingly concerned about these loopholes, with lawmakers suggesting new measures to regulate remote access to US technologies via cloud services. Current export restrictions are under scrutiny, with their effectiveness being called into question.

In a statement to TechLoot, an AWS spokesperson confirmed: “AWS complies with all applicable US laws, including trade laws, regarding the provision of AWS services inside and outside of China.”