CCP Reviews on Alibaba’s violations, affecting all its technology companies

On July 15th, Bloomberg reported that the biggest cybersecurity data breach of Alibaba Group Holding could prompt the CCP’s determination to crack down on its domestic tech giants and accelerate a move away from their private cloud services.

 This week, the executives from Alibaba’s cloud computing unit were summoned by Shanghai authority over the data leak.

 The embarrassing data leak came just months away from what could be an unprecedented third term for Xi Jinping, who has stressed the importance of cybersecurity. Not only because of the large scale of the data breach but also because the data is managed by the Shanghai police, who help collect citizens’ data and enforce increasingly harsh cyber laws.

 The mass migration of users to state-backed cloud systems began even before the hack, as the CCP regime relentless cracks down on its formerly booming tech giants, prompting institutions to turn to state-owned providers. Large corporations such as China Construction Bank and local governments in cities such as Nantong have begun to move towards state-backed cloud platforms.

 Alibaba Cloud’s reputation took a hit last year when CCP’s Ministry of Industry and Information Technology (MIIT), the CCP’s powerful technology watchdog, accused the service provider of failing to report a software flaw to the government promptly. The MIIT subsequently suspended cooperation with Alibaba Cloud on a cybersecurity information sharing platform for six months.