How could China access US client data on Alibaba Cloud?

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China's Potential Access to US Client Data on Alibaba Cloud

The Biden administration is reviewing Alibaba's cloud business to assess the risk of the Chinese government accessing sensitive data belonging to US clients. This review focuses on how Alibaba stores personal information and intellectual property, and whether such data could be accessed by Beijing or disrupted for US users. Concerns are amplified by the potential for cloud servers to be exploited for cyberattacks and past instances of Chinese hackers using cloud services to access private information.
Data Storage and Government Access Concerns

The primary concern for US national security officials revolves around the storage practices for data belonging to American clients of Alibaba Cloud. This includes highly sensitive personal information and valuable intellectual property. The review aims to determine the mechanisms through which the Chinese government might gain access to this data, even if stored by a foreign company operating within China or by a Chinese company operating abroad.
Exploitation of Cloud Infrastructure for Cyber Attacks

Cloud servers, by their nature, can be instrumental in launching cyberattacks by concealing the origin of the attack and providing access to extensive client networks. Indictments against Chinese hackers have revealed instances where cloud servers were utilized to gain unauthorized access to private information. A notable example involved hackers linked to the Chinese Ministry of State Security infiltrating HPE’s cloud computing service, using it as a base to attack customers and steal corporate and government secrets.
Historical Precedents and Warnings

The potential risks associated with Chinese cloud providers have been a subject of scrutiny for some time. In August 2020, the Trump administration issued a warning specifically targeting Chinese cloud providers, including Alibaba. This warning aimed to prevent sensitive personal information of US citizens and valuable intellectual property of businesses from being stored and processed on cloud systems accessible to foreign adversaries. This underscores a long-standing apprehension regarding the security of data held by such entities.

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How could China access US client data on Alibaba Cloud?

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