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The US considers new steps to cut off China from the cloud.

Plus, Meta prepares to take on Twitter with a conversation app of its own.

Musk has said that most advertisers have returned or will be returning,

but if even some significant portion of them go to threads instead,

it would be a rounding error for Meta, but a big hit to Twitter's quest to be profitable.

And the end of affirmative action heats up debates about workplace diversity programs.

It's Wednesday, July 5th. I'm Luke Vargas with Wall Street Journal,

and here is the AM edition of What's News, the top headlines and business stories moving your world today.

We are exclusively reporting that the Biden administration is preparing to restrict Chinese companies

from accessing US cloud computing services.

That is, according to people familiar with this situation,

who said that if the proposed rule goes into effect,

Amazon and Microsoft might need to seek government permission

before providing cloud services that used advanced AI chips to Chinese customers.

Our Beijing Bureau Chief Jonathan Chang explains how the US proposal could affect relations with China.

...