China-US, possible revision of cloud services

14/04/2019

In trade talks with the United States, China wants to re-discuss the restrictions for foreign cloud service companies

 

China wants to allow its cloud technology to more easily attract the United States. For this reason, China has revised its offer to reduce restrictions on foreign cloud service companies, allowing them easier access to the cloud computing industry. This compromise must be reached with the United States in trade negotiations.

In this regard, last week, Chinese vice premier Liu He proposed to issue more licenses to data center operators and to raise the maximum limit of 50% for cloud service providers.

 

Negotiators from both sides continue to negotiate on the cloud computing offer this week

 

The importance of a compromise for China is obvious: China is destined to become the largest cloud market in the world by 2023 and the US market could be a fundamental customer.

US technology giants, including Amazon, Microsoft and Apple, have invested millions of dollars to create cloud services in China, but their operations are hampered by Chinese regulations. For example, operators of foreign software services must establish a joint venture with a local partner and the ownership is limited to 50%.

 

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