Amazon, Microsoft Face Tough New Limits on China Cloud Market

Amazon Web Services and Microsoft’s cloud business face tough new restrictions on their business in China, drastically limiting their roles in their Chinese operations, as a result of proposed new Chinese government rules, lawyers and service providers say.

Draft rules issued by the government in late November, but which have received little attention in the media, would allow only Chinese cloud providers to sign contracts with clients. The rules ban foreigners from using their own trademarks and branding to market services, according to a report by law firm Covington & Burlington.

No subscription? You’re missing out.
Join the high-powered community of tech and business leaders who rely on The Information’s original news and in-depth reporting.
Subscribe to read the remaining 675 words of this article.
What’s included in a subscription?
Read The Information’s original, in-depth reporting and analysis
Receive as-they-happen articles via email
Talk with award-winning reporters in subscriber-only conference calls
Join the conversation on our subscriber-only Slack channel
Attend intimate, high-powered events with leaders in tech and business
Subscribe to The Information

The new rules come on the heels of China’s controversial new Cybersecurity Law last year that will go into effect this June despite multinationals’ strong opposition. That law grants government investigators access to companies’ data, requires mandatory testing and certification of computer equipment, and requires data be stored in China.

Ralph Daloisio and Rahul Harkawat commented on this article.
Read comments from top tech and industry leaders
Joe Lonsdale
Joe Lonsdale
Founding Partner, Eight
Chamath Palihapitiya
Chamath Palihapitiya
Founder & Managing Partner, SocialCapital
Tina Sharkey
Tina Sharkey
CEO, Brandless
Jonah Peretti
Jonah Peretti
CEO, Buzzfeed
Adam D'Angelo
Adam D'Angelo
CEO, Quora
Brit Morin
Brit Morin
Founder & CEO, Brit + CO
Dustin Moskovitz
Dustin Moskovitz
Co-Founder, Asana
Christina Miller
Christina Miller
President & General Manager, Turner
Max Levchin
Max Levchin
CEO, Affirm
Adam Mosseri
Adam Mosseri
Director of Product, Facebook
Alex Mather
Alex Mather
The Athletic
Martha Josephson
Martha Josephson
Partner, Egon Zehnder
James Murdoch
James Murdoch
Co-Chief Operating Officer, 21st Century Fox
Andrew Kortina
Andrew Kortina
Founder, Venmo
Ben Chestnut
Ben Chestnut
Co-Founder & CEO, Mailchimp
Ruchi Sanghvi
Ruchi Sanghvi
VP Operations, Dropbox
Login or Subscribe to follow the discussions happening here and real-time in our   Slack Community.
Cloud computing in China is still a nascent market compared to the U.S. But its growth potential makes it an important battleground for cloud providers.