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The trade war moves to the cloud and the US investigates three Chinese companies

The trade war moves to the cloud and the US investigates three Chinese companies
The trade war moves to the cloud and the US investigates three Chinese companies

Concerns revolve around how these Chinese companies, which operate cloud services and route Internet traffic in the United States.

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The tensions between the United States and China intensify with the recent investigation by the Department of Commerce against China Mobile, China Telecom and China Unicom. These companies, accused of using their Internet operations in the United States to access and potentially transfer sensitive data to China, are under scrutiny by the US authorities.

Although the investigations into China Mobile and China Telecom have concluded, China Unicom case is still ongoing. Concerns revolve around how these Chinese companies, which operate cloud services and route internet traffic in the United States, could access information that the US government considers critical to the national security and privacy of citizens and businesses.

The US response could include harsh measures such as blocking its ability to operate in data centers and route data through US networks. This would not only significantly affect Chinese companies in the US market, but could also trigger symmetrical responses from China, further exacerbating bilateral tensions.

The context

These events are part of a broader context of technological and commercial war between the two powers, where restrictions and sanctions are used as political and economic tools. Previously, The Federal Communications Commission had denied these Chinese companies permission to offer telephone services and broadband in the United States, citing similar concerns about security and data integrity.

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They predict that banks will do without their own data centers in search of the efficiency, flexibility and scalability offered by the cloud.

They predict that banks will do without their own data centers in search of the efficiency, flexibility and scalability offered by the cloud.

The uncertainty about the future of these Chinese operators in the United States is palpable. As cloud computing expert Bert Hubert pointed out, having your own data centers could mean having a “piece of China inside the United States“, which underlines the complexity and implications of these operations for the cybersecurity and digital sovereignty of both countries.

Source: Ambito

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