According to the forecast of Forward Intelligence, by 2020 the aggregate size of the market of the cloud computing industry in China will be 686.6 billion yuan (about 103.6 billion US dollars). The cloud computing industry in China has experienced significant growth since 2010, while the size of the market will reach 178.2 billion yuan in 2016, an increase of 18.8% per year.
The main providers of cloud services saw this, and most of them already have important points of presence in China. Moreover, China’s upstart in the impasse, Alibaba Cloud, is already getting a lot of interest from Chinese companies that want to use the public cloud.For enterprises outside of China, it is about the ease of trading with China. Although many enterprises import and export to China, information exchange, legal practice and political problems are problematic. This forces foreign companies to fear the use of cloud providers in China, even the subsidiaries of American providers.
First, the bad news: services in cloud computing with foreign investment, operating in China, should be aware of the limitations in data management and other legal issues. Even if you have a local partner in China, US companies should consider the legal compliance of your cooperation agreement, including compliance with qualification requirements, data storage restrictions and other regulatory policies.
In other words, it is not easy for China to conduct business electronically, and the use of public clouds can not bypass restrictions. The use of cloud computing in China is a complex exercise due to government security measures and active monitoring of Internet traffic.
Now the good news: whether in the US or China, cloud providers should be the ones that provide leadership and automated systems that will allow you to work within these constraints. The cloud service provider becomes the main intermediary in doing business in China, automating the compliance subsystems that keep you and the companies with whom you are working in the cloud because of problems. Yes, this means that you must use the same cloud service provider as your partners.
In trade with China, there is a lot of profit that American companies can get. Despite the fact that in the past there were complex and expensive rules in China, which caused foreign companies from other countries, the usual use of public cloud providers could make the electronic integration of partner systems more simple and compatible with both Chinese and American legislation . For the all-powerful dollar, we welcome Cloud in China.