The US government is reviewing Alibaba's cloud services, saying it is "concerned about national security risks"!

It is learned that according to Reuters, the Biden administration is reviewing the cloud business of e-commerce giant Alibaba to strictly investigate the business dealings between Chinese technology companies and American companies to determine whether they pose a risk to US national security.

According to people familiar with the matter, the focus of this review is how Alibaba Cloud stores data of American customers, including personal information and intellectual property, and whether the Chinese government can control this information. In addition, whether the Chinese government can prevent American users from accessing the data they store on Alibaba Cloud will become a focus of attention.

Ultimately, U.S. regulators could reportedly force Alibaba to take steps to reduce the risks posed by its cloud service or completely ban Americans at home and abroad from using the service.

According to people familiar with the matter, former US President Trump had been closely monitoring Alibaba Cloud when he came to power. In August 2020, the Trump administration issued a warning to Chinese cloud computing providers including Alibaba, saying that "the most sensitive personal information of American citizens and the most valuable intellectual property of enterprises are stored on the cloud systems of foreign companies.

The report said that the investigation into Alibaba Cloud's business was led by the Commerce Department's Office of Intelligence and Security, which was created during Trump's tenure and has broad powers, including prohibiting or restricting transactions between US companies and internet, telecommunications and technology companies from countries such as China, Russia, Cuba, Iran, North Korea and Venezuela.

Alibaba Cloud has a small U.S. business, with less than $50 million in annual revenue, according to market research firm Gartner Inc. But if regulators block U.S. companies from doing business with Alibaba Cloud, it could be a major blow.

It is learned that China's Alibaba is ranked as the world's fourth-largest cloud service provider by research firm Canalys, with about 4 million customers, and the cloud business is described as its "second largest growth pillar." In 2020, cloud computing revenue increased by 50% to US$9.2 billion, but only accounted for 8% of total revenue.

Editor ✎ Nicole/

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