China Cloud Service US Prospects Dim

Huawei Cloud and Alibaba Cloud to Commerce’s Entity List?

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Chinese cloud computing companies could pose a threat to US national security, Commerce Secretary Gina Raimondo told a Senate panel Wednesday.

She promised to review a request made by a group of Republican senators to add companies like Huawei Cloud and Alibaba Cloud to Commerce’s Entity List, which would subject the firms to US export controls.

“I've put over 200 Chinese companies on the entity list in my tenure and we are actively, constantly investigating additional threats and if and as we think companies need to go onto the list, I will not hesitate,” she said.

Ms. Raimondo appeared at the Senate Appropriations subcommittee hearing on the fiscal year 2024 budget request for Commerce. She noted that the request proposes an increase in funding for Commerce’s Bureau of Industry and Security so that it can step up enforcement.

She was asked about security concerns surrounding the Chinese companies by Sen. Bill Hagerty (R-Tenn), who along with eight other Republican senators sent a letter to Administration officials urging that controls be imposed of Chinese cloud computing companies.

“We urge you to use all available tools to engage in decisive action against these firms, through sanctions, export restrictions, and investment bans, and to further investigate PRC cloud computing service companies,” they wrote in a letter to Ms. Raimondo, Treasury Secretary Janet Yellen and Secretary of State Anthony Blinken.

In addition to Sen. Hagerty, the letter was signed by Republican Sens. Thom Tillis (NC), Marco Rubio (Fla), Steve Daines (Mont), Ted Cruz (Texas), Joni Ernst (Iowa), Katie Britt (Ala), Kevin Cramer (ND) and Dan Sullivan (Alaska).

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