EXCLUSIVE- As per Reuters U.S. is examining the tech and com giant Alibaba’s Cloud Units in the USA under the order of Biden’s Administration for the National Security Risk.
The major concern of the investigation is regarding the data of U.S. clients on the cloud servers of Alibaba, The team will search about the data protection of the American Alibaba Users, whether the company is sharing the personal data with Chinese Agencies.
As per the sources of Reuters, the U.S. Regulatory board will take immediate steps if they found any scripts or access to the data with any Chinese authority.
The case was earlier raised by the government of Donald Trump but finally, it’s happening under the supervision of Joe Biden’s Office. Although the market share of Alibaba in the Cloud business in the U.S. is not that significant yet, the company is growing at a very good pace so the concern of National Security could raise if any data got accessed by any other Chinese agency.
The Review of the team will deal with the future of CLoud business of the com giant Alibaba in the U.S., The Chinese Embassy in Washington has not responded anything on the news although various news agencies have requested for their comment on the issue.
And the representatives of Alibaba have also not commented anything on this.
Earlier the Trump Administration had issued a warning in 2020 on Alibaba’s Cloud Servers:
“to prevent U.S. citizens’ most sensitive personal information and our businesses’ most valuable intellectual property…from being stored and processed on cloud-based systems accessible to our foreign adversaries.”
Alibaba had started the Cloud business and to operate it from the U.S. the company had started the business in Silicon Valley to compete for the market with Amazon.com Inc, Microsoft Corp, and Alphabet Inc in 2015. Then it has expanded the data centers in Virginia too. Later in 2018, the company had tried to acquire the U.S. money transfer company MoneyGram International Inc by Alibaba’s affiliated company Ant Group that time the Trump Government had stopped the bidding process by giving reasons to National Security.
Both the Governments are imposing heavy taxes also on a few Chinese firms in the U.S.