US President Joe Biden’s administration has launched an audit of the cloud service of Chinese tech giant Alibaba, as the company’s policy was suspected of a threat to US national security, reported Reuters anonymous sources. The US government is gradually tightening its grip on Chinese tech firms that do business with US companies.
First, the authorities intend to find out how Alibaba Cloud stores data of US customers (including personal information and intellectual property) and whether the Chinese government can access them. The Biden administration also sees the risk that the corporation, following Beijing’s decision, could block American users from accessing information in its cloud storage. In addition, cloud servers are a favorite target for hackers, as they allow you to hide where and by whom a cyberattack is committed, and open access to a large number of client networks for criminals.
If the authorities detect national security risks in the operation of the service, US regulators can force the company to take appropriate measures or even prohibit its citizens from using this platform. Experts say that the cloud service is a small but very promising part of Alibaba’s business. If regulators ban transactions between US companies and Alibaba Cloud, this decision will deal a blow to one of the “pillars” of Alibaba’s business development and to the reputation of the corporation as a whole.
Under former US President Donald Trump, the Commerce Department has also raised concerns about Alibaba Cloud, but the Biden administration has launched a formal review. In addition, in November 2021, the US blacklisted eight Chinese technology companies, also due to national security concerns. The firms were added to the list for their alleged assistance to the Chinese military, as well as their attempts to “purchase US-origin products to support military applications.”
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