Sanction Chinese Cloud Firms Posing National Security Risk: GOP Senators

Republican Senators Raise Security Concerns About Chinese Cloud Firms

Protecting U.S. Interests and Assets

A group of nine Republican senators recently penned a letter to Biden officials, expressing their deep concern about Chinese cloud computing companies like Huawei Cloud and Alibaba Cloud. They raised security concerns and urged for strict measures to be taken against these firms to protect U.S. interests and assets.

The letter, led by Sen. Bill Hagerty (R-Tenn.), cited open-source information that showed how these Chinese cloud firms posed a threat to U.S. national security and economic security. They also highlighted how these firms were engaging with foreign entities, some of which were sanctioned, and were directly challenging the national security and economic security interests of the United States and its allies and partners.

The senators specifically called out Huawei Cloud, which was added to the U.S. Commerce Department’s “Entity List” trade blacklist in August 2020. The letter cited a report by The Wall Street Journal, which revealed how Huawei Cloud used its technologies to aid the Chinese communist regime in monitoring political dissidents, managing ideological reeducation and labor schedules for prisoners, and helping retailers use facial recognition to track shoppers.

The letter also highlighted how Huawei Cloud launched its “Sky Computing Constellation” in partnership with Spacety China and the Beijing University of Posts and Telecommunications (BUPT). Spacety China and its subsidiary in Luxembourg were recently sanctioned by the U.S. Treasury Department for offering satellite imagery of certain Ukrainian locations to a Russian entity. BUPT, on the other hand, was added to the “Entity List” in December 2020 for providing aid to the Chinese military regarding advanced weapons.

The senators urged for sanctions to be imposed on Huawei Cloud under existing authorities for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of recently-sanctioned Spacety.

Alibaba Cloud Ties With Chinese

Another Cause for Concern

Aside from Huawei Cloud, the senators also expressed concern about Alibaba Cloud and its ties with the Chinese government. They urged for a thorough review of Alibaba Cloud’s operations and for measures to be taken to protect U.S. interests and assets.

• The senators highlighted how Alibaba Cloud was partnering with the Chinese government to develop a “digital silk road” that would expand China’s influence in the world.
• They also cited how Alibaba Cloud was providing cloud services to Chinese state-owned enterprises and government agencies, which raised concerns about the security of U.S. data.
• The senators urged for strict measures to be taken against Alibaba Cloud to prevent it from being used as a tool for the Chinese government to advance its interests at the expense of U.S. national security and economic security.

The senators’ letter serves as a reminder of the ongoing security concerns surrounding Chinese cloud firms and the need for the U.S. government to take decisive action to protect its interests and assets.