According to the newspaper, the measure will mean that major cloud service providers such as Amazon and Microsoft will need to seek permission from the US government before providing cloud services such as advanced artificial intelligence to Chinese companies.
The data comes a day after Beijing announced that it intends to impose export restrictions on two rare minerals that are crucial in the manufacture of semiconductors.
This increases the concern that the conflict between the world’s two economic superpowers will deepen further.
On Thursday, US Treasury Secretary Janet Yellen will visit China to raise issues related to global economic development, as well as the importance of managing the relationship between the countries in a responsible manner, according to the US Treasury Department.