Cloud Computing In China: New Rules Will Increase Regulatory Oversight

Introduction

On 24 November 2016, China's Ministry of Industry and Information Technology (MIIT) issued a draft "Notice on Regulating Cloud Computing Service Market Business Activities" (Draft Notice). The public consultation period is open for one month and closes on 24 December 2016. Cloud computing is receiving a great deal of attention within China's information technology industry at present, and is a particular focus for businesses engaged in providing IT and telecom products and services in both the public and private sectors. However, at the moment provisions relating to cloud computing services are currently scattered among policy guidelines, technical regulation and industry standards. The purpose of the Draft Notice, therefore, is to enhance regulatory oversight and control over cloud computing services by imposing certain obligations on cloud computing service operators.