Country Risk

Chinese state-owned-enterprise managing Apple’s user information indicates increased government control and data embargo risks during diplomatic disputes

17 January 2018


On 10 January 2018, US technology firm Apple announced that it would relocate Chinese mainland customers’ (excluding Hong Kong, Macau, and additionally Taiwan) data stored on iCloud, the company’s cloud data storage system, from Apple’s servers in the United States to China.

The iCloud service will be managed by the Guizhou-Cloud Big Data Industry Development (GCBD), a state-owned cloud-computing company regulated by the Board of Supervisors of Guizhou State-Owned Enterprises. The purpose of the move is to comply with China’s Cybersecurity Law, enacted in June 2017.

In 2016, Apple was asked by Chinese authorities to remove a number of Apps from its App Store and to submit its iPhone products for “security inspections” prior to market launch in China.

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