Reuters:The Biden administration is reviewing e-commerce giant Alibaba's cloud business to determine whether it poses a risk to U.S. national security, according to three people familiar with the matter, as the government tightens scrutiny of Chinese technology. The company's dealings with U.S. companies.
The investigation is focusing on how the company stores data on U.S. customers, including personal information and intellectual property, and whether the Chinese government has access to that data, people familiar with the matter said. The possibility that Beijing could disrupt U.S. users' access to their information stored on AliCloud is also a concern, one of the people familiar with the matter said.
U.S. regulators may ultimately choose to force the company to take steps to mitigate the risks posed by its cloud business, or ban Americans at home and abroad from using the service altogether. Alibaba's U.S.-listed shares were down nearly 3% before the opening bell on Tuesday, and ended the day down slightly more than 1%.
Former President Donald Trump's Commerce Department was concerned about Alibaba's cloud business, but the Biden administration initiated a formal review after he took office in January, according to one of the three people and a former Trump administration official. [Read More]