Cloud to be an American: Congress votes to kick China off remote GPU services

Cloud to be an American: Congress votes to kick China off remote GPU services

Summary

The US House of Representatives has passed the Remote Access Security Act by 369-22, extending US export-control law to certain forms of remote access to export-controlled items — notably high-end GPUs and other AI chips. The bill aims to close a loophole that has allowed Chinese companies to gain access to powerful US hardware by renting cloud-based compute hosted outside China.

The legislation’s sponsors, including Representative Mike Lawler (R-NY) and Representative John Moolenaar (R-MI), argue the change brings export controls into the digital age by treating cloud compute similarly to physical exports. Passage in the House is a major step, but the bill still needs Senate approval and the president’s signature to become law.

Key Points

  • The Remote Access Security Act passed the House 369-22, making certain remote access to export-controlled chips subject to US export-control law.
  • The move targets a real-world workaround where Chinese firms rent access to US GPUs via cloud providers instead of importing the physical chips.
  • Bill sponsors say the change closes a critical loophole and strengthens national security by treating cloud compute as an export-controlled item.
  • House passage does not guarantee enactment — the bill must clear the Senate and receive the president’s signature.
  • Context is shifting: Nvidia has been authorised to sell H200 chips in China, and Beijing is pushing domestic chip development, complicating enforcement and industry effects.

Content Summary

The House passed the Remote Access Security Act to extend the Export Control Reform Act to cloud-based access to export-controlled chips. The bill reacts to instances where Chinese companies obtained access to high-end GPUs — otherwise restricted for direct export — by renting compute from cloud platforms hosted outside China or via local partnerships in China.

Supporters frame the law as a necessary update for the digital era: if compute can be accessed remotely, it should be treated like a physical export. Critics and observers note the bill still faces hurdles in the Senate and the White House, and real-world enforcement could be challenged by existing commercial arrangements and recent approvals for chip sales, such as Nvidia’s H200 shipments to China.

The legislative change intersects with broader geopolitical and industrial trends: the US tightening of chip controls, China’s push to build domestic capacity, and cloud providers’ global operations that can blur jurisdictional lines.

Context and Relevance

This matters if you work in cloud, AI, semiconductors, or national security. The bill would reshape how vendors, cloud providers and international customers handle access to advanced compute: companies may face new compliance burdens, cloud architectures could be altered to enforce geofencing, and nations will keep racing to develop local chip ecosystems.

It also signals a policy trend: regulators are moving from hardware-centric controls to rules that recognise software and remote access as vectors for sensitive technology transfer.

Author style

Punchy: This is a big, practical step — not just rhetoric. If you’re in infra, AI procurement or policy, the detail matters because it will affect where and how high-end GPUs can be offered, billed and used across borders. Read the detail if you care about compliance or competitive access to compute.

Why should I read this?

Short version: it’s closing a real cheat code. If you use cloud GPUs, sell cloud services, or track AI supply chains, this bill could change the rules of the game — fast. We’ve boiled it down so you can see the likely impact without wading through the full legal text.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2026/01/13/congress_votes_china_gpu_cloud/