According to an article in Reuters, the Joe Biden administration is reviewing Alibaba’s cloud business to determine if it poses a security risk to the United States.
According to the news agency, the investigation focuses on the way the Chinese company stores the data of American customers, including personal information and intellectual property.
Also, and according to sources close to the Biden administration, the investigation seeks to determine whether the Chinese government could have access to that private information.
The researchers are also concerned that Asian authorities will cut off users’ access to their information stored in Alibaba’s cloud.
For the same reason, US regulators could force the company to take steps to reduce the risks associated with the cloud business or ban Americans at home or abroad from using the service altogether.
Concern regarding Alibaba’s cloud business has been dragging on since the Donald Trump administration.
In August 2020, the executive issued a warning against Chinese companies that have this service, including Alibaba, “to prevent the most sensitive personal information of US citizens and the most valuable intellectual property of our companies from being stored. and process in cloud-based systems accessible to our foreign adversaries.”
Finally, the researchers also say that cloud servers are ideal for hackers to launch cyberattacks, since they can hide the origin of the attack and gain access to a wide range of client networks.