The Biden administration has reportedly launched an investigation in China Cloud computing from e-commerce giant Alibaba unit over concerns it could pose a risk to national security.

The investigation focuses on Alibaba’s data storage practices for US customers, sources familiar with the matter said Reuters. Regulators will examine whether the Chinese government could have access to sensitive information or whether it could block access to data stored on the Alibaba cloud.

The review was ordered shortly after President Biden took office in January, the report said. Previously, the Department of Commerce under ex-President Donald Trump also expressed concern about the unit.

The investigation could lead to regulatory action against Alibaba’s cloud business, including a possible US ban.

A Commerce Department official told Reuters the agency does not comment on the “existence or non-existence of transaction screening.” Alibaba…


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