Chinese cybersecurity law will hit US cloud providers
International companies are likely to be hit hard by stringent new data laws in China that came into effect on 1 June. The regulations force foreign companies to seek Chinese approval before transmitting data out of the country. While the authorities insist the law is aimed at deterring cyber attacks, foreign businesses are concerned about data security. Some of these are already reportedly switching their data management services from Amazon to Alibaba. The law is "likely to significantly impact all multinational companies across all industries and sectors with significant operations in China", said US law firm Latham & Watkins.
BEIJING Foreign companies in China are bracing for the impact of a new law governing data collection that came into effect on June 1.

The law requires companies to store customer information within China and to seek approval before transmitting that data out of the country. The law has drawn international opposition over concerns that it could hinder the free use of data, which companies rely on in forming their business strategies.