Cloud computing in China, paid for by the U.S. trade deficit

Posted by LDonia on 09/09/2013

The U.S.-China Economic and Security Review Commission (USCC) released a report last week raising questions about China's stake in cloud computing.

According to a release the report, Red Cloud Rising: Cloud Computing in China, Beijing plans to put $1 billion toward cloud-computing development in the coming years, and fold those advancements into its computer warfare efforts:

(The report) details the relationship between the Chinese military and intelligence services and China’s broader cloud computing development efforts. For example, the People’s Liberation Army...is working to leverage cloud computing capabilities to enable the military’s “informatization” efforts, including connecting and integrating the military’s numerous systems into a single information technology framework.

While the potential implications for American business that cloud compute in China are not yet clear, one thing is: This effort is paid for by America's growing trade deficit with that country. The more money the United States throws at China -- by giving it our jobs, our businesses and buying the cheap goods it sends back our way -- the more China will look for ways to infiltrate other sectors.

There is reason enough for the U.S. to shrink its trade deficit with China, but here's reason more. A bill currently sitting in the recesses of U.S. Congress would punish China, and other countries for currency manipulation.

Encourage your congressperson to sponsor or support the bill.

Note: Michael Wessel, an adviser to the Alliance for American Manufacturing, is an USCC commissioner.

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