Private companies in China are requested to migrate data from their cloud into government-run cloud service

September 2, 2021
Private companies China migrate data government-run cloud service infosec privacy

Alibaba and Tencent, both tech giants from China, have recently received requests to safeguard their data migration process with their direction and administration commission. These requests are coming from the recent news that China has ordered private companies to migrate from their cloud services into the government’s infrastructure. 

Additionally, as per recent reports, the government regulators have also asked the private firms to avoid establishing data centres or purchase new servers moving forward. 

The regulators have also mentioned that all the data migration activity must be moved and accomplished on or before September 30, 2022. This movement is expected to affect huge companies from China, such as Huawei, Tencent, and Alibaba. Also, the mentioned government-run cloud service of which the migration will take place is called “Guoziyun” or “state asset cloud”. 

According to a file from the government regulator, it is said that all private firms must not sign new contracts or agreements with other third-party cloud platforms. They should also stop engaging in cloud resource rental agreements. 

Further reports also claimed that China has planned to block tech companies with large amounts of private user information into listing abroad. This is an action intended to guarantee the country’s regulatory restrictions against all private companies. Furthermore, reports mention that even the less sensitive companies must also need regulatory approval if they want to list abroad. 

The authorities of the Chinese government have recently inspected a ride-hailing company called Didi Chuxing due to cybersecurity issues as it has listed itself in the New York stock exchange. Because of this, the government has asked companies with over a million customers to seek regulatory approval before they are allowed to list out of China. 


A new law was passed last week in China called the new online privacy law, which requires companies to lessen their sensitive data collection and enhances user consent.


The law is aimed to track down those firms that are apparently using customers’ personal data to gain profit. 

Even though Chinese companies have contributed billions in the US market, this recent news is perceived as authorities trying to tighten their policies to gain control over the Chinese IPOs situating in the US. 

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