China Promotes Innovation and Development of Cloud Computing

China Promotes Innovation and Development of Cloud Computing

The State Council has called for local governments and ministries to develop the cloud computing industry in order to harness its ability to optimise the allocation of IT and data resources in accordance with market demand. The key achievements targeted by the State Council in 2017 include breakthroughs in key technologies and products including cloud computing platform software and Exabyte (EB) level cloud storage system, and a well-built network of cloud computing data centres with newly-constructed data centres having Power Usage Effectiveness (PUE) of above 1.5. By 2020, the State Council expects to see cloud computing becoming widely used and assuming a key support role in the PRC’s national network with a developed supervisory and regulatory system and enhanced big data capabilities.

Some of the key initiatives in the Opinions include:

  • Infrastructure – building service platforms for the leasing of computing and storage resources, development of online applications in business management and R&D, and collaborative development and mutual application of the Internet of Things (IoT), mobile internet, internet finance and electronic business services with cloud computing;
  • Improved market and legal environment – revising the classification of telecommunication businesses to include market entry rules for cloud computing and support qualified enterprises to apply for operating permits, enhancing backbone internet connectivity, adjusting the settlement policy between websites, and publishing online personal data protection rules for cloud computing enterprises and industry standards for technology, services, facilities and security;
  • Financial and policy incentives – facilitating the establishment of cloud computing venture capital funds and encouraging financial institutions to support advanced cloud computing projects, increasing public funding support to R&D and commercialisation of cloud computing, classifying cloud computing enterprises as key software, innovative technology and advanced technology services enterprises to allow more qualified enterprises to enjoy tax benefits, enabling eligible data centres to enjoy special electricity tariffs for large industrial users, and promoting cloud computing based outsourcing of government functions; and
  • Internationally competitive environment – encouraging collaboration with private enterprises to foster cloud computing talents in high schools, vocational schools and research institutes, supporting the opening up of international markets through mergers and acquisitions, joint ventures and overseas cloud computing data centres, and enhancing cooperation between national and international enterprises in R&D.

Reference: Opinions on Promoting Innovation and Development of Cloud Computing and Cultivating New Commercial Activities in the IT Industry《关于促进云计算创新发展培育信息产业新业态的意见》 (the "Opinions")

Issuing Authority: The State Council of the People’s Republic of China (the "State Council")