Chinese companies banned from buying US tech rent it instead

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Local clouds reportedly offering surprisingly cheap access to their banned comrades

has heard focussed on shipments of physical product.

There's no reason the US could not also consider clouds and other service providers as potential providers of evasion routes. If big Chinese clouds are found to be offering banned silicon to local customers, the US has obvious leverage: both Alibaba Cloud and Tencent Cloud have US-based regions. Action against Alibaba's e-commerce operations could be another option. Adding Chinese clouds to lists of sanctioned entities is yet another.relishes the prospect of reporting on how the Land of the Free would respond if big US-based clouds' Chinese presences are found renting kit to banned companies.

But Uncle Sam would find it harder to act against the many clouds that operate only within China. Tracking gray market sales to all those small clouds would also be challenging.that its chipmakers invested in China long before such sanctions were imposed, but now face the prospect of not being able to operate profitably in the Middle Kingdom.

The Biden administration's CHIPS Act offers incentives for chipmakers to move manufacturing stateside, but also includes

 

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