The balkanization of the cloud is bad for everyone

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        China has long required that cloud infrastructure be hosted in China by local companies.
        In fact, China’s Cybersecurity Law mandates that certain data be stored on local servers or undergo a security assessment before it’s exported.
        A Personal Information Protection law, which is still in draft form, goes a step further by stating that China’s data rules can be enforced anywhere in the world if the data at issue describes Chinese citizens.
        This law would also create a blacklist prohibiting foreign entities from receiving personal data from China.
        Secretary of State Mike Pompeo’s Clean Network Initiative would prohibit Chinese cloud companies from storing and processing data on US citizens and businesses.

        This could set a dangerous precedent: the US government would be mirroring and legitimizing China’s cloud regulations, which require foreign providers to enter the market only through joint ventures with Chinese companies that own majority shares.
        And in South Africa, a 2018 guideline from the South African Reserve Bank set up an approval mechanism for institutions seeking to use cloud computing, indicating that bank supervisors would “not be agreeable” if data were stored in a way that might inhibit their access to it.
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