China’s cloud services are expected to balloon in coming years, but U.S. firms like Google, Amazon and Microsoft face tricky decisions about entering the market.
Amazon Web Services (AWS), like other American giants, has struggled to break into China’s large market. It’s partnered with Sinnet to access Chinese clients. Credit: Tony Webster, Creative Commons
Last spring, Google abruptly shut down “Isolated Region,” an initiative aimed at providing cloud services in China and other politically sensitive markets. The decision, which was first reported by Bloomberg, surprised some analysts because it ran counter to Google’s efforts to grow its cloud services globally to compete with Amazon and Microsoft.
But in other ways, Google’s decision made perfect sense. While China’s cloud market is already massive, it is also notoriously hard to break into, since foreign firms operate under strict government oversight and are required to form a joint venture with a Chinese firm.
“It’s a very protected market, so any provider that is trying to make inroads into the China region is required to have some kind of partnership with a China-based provider,” says Sid Nag, vice president in the technology and service provider group at Gartner, the research and advisory company. “That becomes a challenge because they’re not
Exclusive longform investigative journalism, Q&As, news and analysis, and data on Chinese business elites and corporations. We publish China scoops you won't find anywhere else.
A weekly curated reading list on China from David Barboza, Pulitzer Prize-winning former Shanghai correspondent for The New York Times.
A daily roundup of China finance, business and economics headlines.
We offer discounts for groups, institutions and students. Go to our Subscriptions page for details.
Why is one of Taiwan's largest media groups — Want Want China Times Media Group — spreading anti-U.S. rhetoric? Largely because its billionaire owner, Tsai Eng-meng, is known to sympathize with the Chinese Communist Party and favors unification with the mainland. Now, with Taiwan gearing up for a critical presidential election, Want Want’s efforts are picking up and helping to normalize CCP talking points.
A look at ZPMC: how it came to dominate ports around the world; its role in Chinese foreign policy; and the consequences of its links to the Chinese state.
The author and academic talks about how trade has actually changed over the last 40 years; why China's rise is linked to Asia's regionalization; and why international supply chains are efficient and resilient.
