Choosing a China-based cloud over its international counterpart is a matter of local regulation. Foreign investors should exercise diligence in selecting cloud services that meet regulatory requirements without compromising internal privacy.
China’s Cybersecurity Law mandates that critical information infrastructure (CII) operators must store certain important data, including personal information relating to Chinese citizens, inside Mainland China.
When companies use their own on-premise servers to host data, this requirement is typically fulfilled. However, when hosting data on a cloud platform, businesses are obligated to ensure that this data remains within China. The easiest way to fulfill this requirement is to use a China-based cloud provider.
For companies with their own on-premise servers, the responsibility of the security and privacy of their data would fall on the strength of the implemented systems. Companies requiring cloud services from external sources should ensure providers guarantee vigorous privacy policies and that data is not shared with third parties.
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