Government officials have said the U.S. has begun a review of China-based Alibaba’s cloud business in search for risks to America’s national security, according to Reuters
The investigation is focusing on Alibaba’s
data storage practices, particularly whether U.S. clients’ personal data and intellectual property may be accessed by threat actors or the Chinese government, according to the officials.
The review will also look into whether China could disrupt American users’ access to their information that is stored on Alibaba’s cloud infrastructure.
At the end of the investigation, regulators could either require Alibaba to implement risk-management measures on their cloud business or block U.S. citizens and businesses from using the service.
The cloud has recently been used by Chinese hackers in breach campaigns, including an attack on HPE’s cloud computing service that led to a years-long infiltration of US corporations and government agencies, which was allegedly performed by hackers with ties to the Chinese Ministry of State Security.