Reuters exclusively reports U.S. examining Alibaba’s cloud unit for national security risks; market reacts

Reuters exclusively reported that the Biden administration is reviewing its cloud business to determine whether it poses a risk to U.S. national security. The focus of the probe is on how the company stores U.S. clients’ data – including personal information and intellectual property – and whether the Chinese government could gain access to it. If regulators ultimately decide to block transactions between American firms and Alibaba Cloud, it will damage the bottom line of one of the company’s most promising businesses and deal a blow to reputation of the company as a whole.