Cloud partnerships with Chinese state industry poses grave danger to American data security, new report finds

Published July 31, 2025 4:29pm ET



EXCLUSIVE — As reliance on cloud computing grows, business deals made by American technology firms, China’s increasing control over undersea cable networks, and the Chinese Communist Party’s intense subsidization of digital infrastructure present a tangible threat to Americans’ data security, a new report published by the American Security Project has found.

One key vulnerability identified in the report is the partnerships struck by Amazon Web Services and Microsoft with Chinese firms in order to provide cloud computing services in mainland China. As a result of these deals, the two firms are required to store all Chinese data in China and are required to transfer foreign data, including that of Americans, to the Chinese Communist Party upon request. Additionally, ASP identifies China’s increased presence in building and maintaining undersea internet cables, growth largely fueled by the CCP’s aggressive subsidies, as another vector for Beijing to surveil Western data.

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