China’s state-owned tech giant gets into cloud computing

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Amid fears of further restrictions on Chinese companies’ access to U.S. technology, centrally controlled state-owned enterprise China Electronics Corp. (CEC) has entered the country’s vast cloud computing market.The company unveiled its “China electronics cloud” services on Wednesday in the Hubei province city of Wuhan, where the business will be headquartered.The services will use hardware developed by CEC chipmaking subsidiary Tianjin Phytium Information Technology Co. Ltd. and will run the domestically developed Kylin operating system.The company’s venture into cloud computing has the goal of “guaranteeing the safety of government and companies’ digital transformation,” CEC’s website says, adding that it will provide both off-the-shelf and customized services.Ma Jing, executive manager of the cloud services unit, said on the same day they have sealed orders with 40 cities to collaborate on the digitalization of management processes. One of CEC’s subsidiaries last month sealed a 420 million yuan ($61.4 million) deal to form a joint venture with a state-owned big-data company based in the Hubei city of Huangshi.The cloud unit’s use of exclusively domestic technologies is being seen as a precaution in case Chinese companies are cut off from U.S. computing technology, especially products made by Intel Corp.”It is …

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