Now, China asks private firms to migrate data to government-run cloud services

WION Web Team
Beijing Published: Aug 29, 2021, 02:12 PM(IST)

A report claimed China planned to block tech firms with large amounts of sensitive user data from listing abroad Photograph:( Reuters )

Story highlights

According to China's assets watchdog, all data should be moved by September 30, 2022 with Huawei, Alibaba and Tencent set to be the worst hit.

According to reports, China has ordered private firms to migrate from its cloud services into the government's infrastructure.

Tech giants Alibaba and Tencent have reportedly been asked to ensure the data migration process by the assets supervision and administration commission.

The assets watchdog has reportedly asked the private players not to build data centres or buy new servers,  a report claimed.

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The move is likely to hit Huawei, Alibaba and Tencent. The government-run cloud service is called "Guoziyun" which means "state asset cloud".

All data will should be moved by September 30, 2022, according to the assets watchdog.

"As of today, all companies should not sign new contracts with third-party cloud platforms, or continue cloud resource rental agreements," a document from the watchdog said.

A report had claimed earlier that China planned to block tech firms with large amounts of sensitive user data from listing abroad in a move intended to ensure regulatory clampdown on private industries.

The Wall Street Journal report said Chinese firms in less sensitive sectors would also need regulatory approval to list abroad.

Chinese authorities had earlier investigated ride-hailing giant Didi Chuxing for "cybersecurity issues" after it was listed in the New York stock exchange.

Reports said firms with over a million users need to seek regulatory approval before listing abroad.

Last week China had passed the new online privacy law asking firms to reduce data collection and obtain user consent. The law aimed to crackdown on firms allegedly profiting over personal data. The new law is reportedly modelled on European Union's General Data Protection Regulation.

Chinese firms have raised billions in the US markets, however, the move by authorities is being seen as a policy to tighten control over Chinese IPOs in America.

(With inputs from Agencies)

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