- China's Tianjin city has asked municipally controlled companies to move their data from private sector operators like Alibaba Group Holding Ltd (NYSE:BABA), Tencent Holdings Ltd (OTC:TCEHY), and Huawei Technologies Co Ltd, Reuters reports.
- China's cabinet, the State Council, reportedly ordered the companies to relocate their data in a state-backed cloud system called "guoziyun," which translates as "state asset cloud" by September 30, 2022.
- Tianjin is a city of 14 million people in the south of Beijing which has a provincial-level status. The move coincides with the country's intense crackdown on the companies' access to the massive trove of data, anticompetitive behavior, and overseas IPO restrictions.
- The rules also forbid the companies from signing new contracts with third-party cloud platforms or continue cloud resource rental agreements.
- More clarity is pending regarding the country's stance on the other provinces.
- Price Action: BABA shares traded lower by 3.46% at $159.53, and TCEHY shares traded lower by 1.46% at $59.08 on the last check Friday.
- Photo by Fooksou Lamimo via Wikimedia
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