Chinese cloud computing firms are seeking to undercut the existing market through state subsidies, which could negatively impact U.S. firms located in Iowa, including Google, Facebook, and Microsoft.
WASHINGTON – U.S. Senator Joni Ernst (R-Iowa), a member of the Senate Armed Services Committee, joined her colleagues in calling on the Biden administration to impose sanctions and restrictions on Chinese companies operating in the United States, including her home state of Iowa.
Specifically, Ernst warned Biden administration officials of the capabilities of Huawei Cloud, Alibaba, and other People’s Republic of China (PRC) cloud computing services, which, under China’s laws, would have to provide full access to their intelligence and data gathering servers to the PRC. Chinese cloud computing firms are also seeking to undercut the existing market through state subsidies, which could negatively impact U.S. firms located in Iowa, including Google, Facebook, and Microsoft.
Ernst writes to the Biden administration: “We write to express our deep concern with the threat to American national security from Huawei Cloud and other People’s Republic of China (PRC) cloud computing services. Open-source information shows that Huawei Cloud and PRC-based cloud computing services not only pose a threat to U.S. national security and economic security, but also are increasingly engaging with foreign entities—in some cases sanctioned foreign entities—that are directly challenging the national security and economic security interests of the United States and our allies and partners.
“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.”
“We are deeply concerned about this growing trend of PRC-based cloud computing services engaging with entities that directly impact the national security interests of the United States. In addition to taking the above actions, we ask that you further investigate and act against China’s other cloud service providers—including those not mentioned in this letter, such as Baidu Cloud and Tencent Cloud—and their direct or indirect operations in the United States that negatively impact our national security and foreign policy interests.”
Read the full letter, led by Senator Bill Hagerty (R-Tenn.), to Secretary of the Treasury Janet Yellen, Secretary of State Antony Blinken, and Secretary of Commerce Gina Raimondo here.