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Navigating China’s Public Cloud Landscape: Challenges and Connectivity Solutions

Home / blog / Navigating China’s Public Cloud Landscape: Challenges and Connectivity Solutions

Cloud computing has been around for more than a decade now and throughout the years we have seen a proliferation in adoption in cloud computing services for Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). Public cloud platforms, such as Amazon Web Services (AWS) and Microsoft Azure, with their scalable, cost-effective and highly available solutions are becoming a preferred infrastructure choice for many businesses globally.

However, public cloud platforms offerings may differ across regions, especially in China compared to the rest of the world. These differences are driven by regulatory, cultural, and technological factors unique to the Chinese market. This blog will explore the key differences between public clouds in China and the rest of the world.
In China, the government exercises tight control over data and cloud services, primarily through its Cybersecurity Law and the Personal Information Protection Law (PIPL). These laws mandate that cloud service providers must partner with local companies to operate within China and ensure that data is stored within the country’s borders. This means international cloud providers such as AWS, Microsoft Azure, and OCI (Oracle Cloud Infrastructure) cannot run their services independently in China. Instead, they collaborate with domestic cloud companies, such as:
• AWS China: Operated by Sinnet and NWCD.
• Azure China: Operated by 21Vianet.
• OCI is not in China

Enterprises who have deployed resources in these public clouds globally frequently encounter problems when they wish to extend their adoption in China.

1. Getting Started

Unlike global public clouds where one account permits you to deploy resources in multiple regions, the public clouds in the China region requires one to have a separate cloud account specifically for China regions. Creating a cloud account in China requires you to have an business entity registered in China.

2. Deploying Resources

There are 2 aspects of challenges here. Firstly, users may encounter connectivity issues accessing the console, especially if the IT managers are based outside of China. Second, upon deploying resources that requires port 80, 8080, 443 will not work by default. There is an ICP registration and exception process that needs to be done with the public clouds and this process can be cumbersome and confusing for enterprises who are not familiar with it.

3. Multi-region, multi-cloud

Outside of China, global cloud providers maintain their own global backbones, offering enterprises faster, more interconnected networks that reduce latency and boost performance in international communications. However, this advantage diminishes at China’s border.

Connecting Chinese public clouds to global regions or data centers via the internet often results in suboptimal network performance, with high latency and frequent packet loss. Opting for private connections, like Direct Connect, ExpressRoute and Fast Connect, presents additional challenges, such as complex pricing, lengthy approval processes, and regulatory restrictions for cross-border communication.

Not all public cloud platforms are created equal, with each facing varying degrees of regulatory restrictions. This adds complexity for enterprises considering adoption of public cloud services in China.
Moreover, China’s cloud market is dominated by domestic providers, with Alibaba Cloud, Tencent Cloud, and Huawei Cloud leading the pack. These companies control a majority of the market share due to their local expertise, partnerships, and adherence to regulatory requirements. Additionally, they offer tailored solutions that cater to China’s unique business environment, including local support for government requirements and integration with local tech ecosystems like WeChat and Alipay.
Conclusion

The public cloud landscape in China differs significantly from that of the rest of the world due to regulatory, technological, and market-specific factors. In China, strict government regulations shape the way cloud providers operate, necessitating local partnerships and data localization efforts.

For businesses looking to expand into China, it is essential to understand these differences and choose the right cloud strategy that aligns with both regulatory requirements and market needs. Navigating the complexities of China’s public cloud market will require partnering with partners like CBC Tech who have the China expertise and technology partner ecosystem to ensure a seamless adoption of public clouds in China.

ABOUT THE AUTHOR

Picture of Derrick Ong

Derrick Ong

CBC Tech Product Director

Derrick leads Product Management and Development initiatives in CBC Tech. As a technology evangelist throughout his career, he drove new service concepts, innovative products, and solutions through strong partnerships with numerous technology, security and cloud partners such as AWS, VMWare, Dell Technologies and Zscaler, from ideation to launch and execution to enterprises globally.

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