China Advances in Cloud but Struggles on the Ground

China Leads in Cloud Computing

China has rapidly developed its cloud computing sector, where domestic firms like Alibaba and Huawei drive technological innovation and adoption at home. These companies have built robust data centers and cloud platforms, helping Chinese enterprises modernize operations and streamline services. Their cloud offerings are tailored to the fast-growing Chinese digital economy and enjoy strong support from local policy and investment. As a result, China has closed much of the technology gap with Western cloud giants in certain areas, and is influencing cloud standards in Asia and beyond.

Challenges Persist in Global Reach and Infrastructure

Despite its success in cloud computing, China still lags in traditional physical infrastructure and faces barriers in global business operations. Western sanctions, market distrust, and geopolitical tensions limit the overseas expansion of Chinese tech companies. Additionally, state guidance and regulatory issues can constrain Chinese firms, making it hard to replicate their domestic cloud success abroad. China’s limited influence over global physical logistics and difficulties accessing advanced hardware further challenge its competitiveness on the world stage.