Due to its sheer size and economic power, China has the potential to be a huge cloud computing market.

But there are many obstacles to overcome. A new report examines these problems and the relationship between China and the US, whilst a big Chinese telco has announced overseas cloud expansion. Where now for China and the cloud?

A report released earlier this month on behalf of the US-China Economic and Security Review Commission (USCESRC) has warned of potential security concerns if the US consumer market for Chinese cloud computing services grows.

The paper, prepared by Defense Group Incorporated, noted in particular the inherent risks of collaboration between foreign firms and Chinese companies offering cloud services, jeopardising the foreign partner’s information security.

Yet the report is quick to ensure the security problems of public clouds aren’t used as a brush to tar China unnecessarily.

“If Chinese public cloud infrastructure …