Pandemic Tech Spending in China Lifts Alibaba’s Cloud

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China’s Alibaba is the world’s third-largest cloud provider behind front-runners Amazon and Microsoft.

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Angus Loten
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Angus Loten

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Sept. 10, 2020 5:30 am ET

Spending on China-based cloud services hit a record high in the second quarter as Chinese companies increased the use of online business tools in the aftermath of the coronavirus pandemic.

The gains were buoyed by Chinese government restrictions on foreign technology firms and growing trade tensions with the U.S., which has kept many of the world’s largest cloud providers from competing in the Chinese market, industry analysts say.

Companies in China spent a record $4.3 billion on cloud services in the first half of the year, up 70% from the same period a year ago, according to estimates by research firm Canalys.

Part of that growth was fueled by an increased use of online information-technology tools by businesses during the Covid-19 outbreak as employees began working from home, Canalys said. Broadband adoption has also expanded across the country in recent years, it said.

As of June, China accounted for an estimated 12.4% of the global cloud market, up from 9.6% in the year-earlier period, the research firm …

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