On 25 November 2016, the Ministry of Industry and Information Technology, China’s telecommunications and Internet regulator, issued a draft Circular on Regulating Business Activities in the Cloud Services Market for public comment (“Draft Circular“). The stated aims of the Draft Circular are to improve the cloud services market environment and further regulate business activities in this sector. In addition to introducing a number of minimum service requirements that cloud operators must observe, the Draft Circular is of particular interest to the industry due to the rules it sets out for market participation by foreign technology companies, including through cooperation with license holders in China. The period for public comments on the draft ended on 24 December 2016.
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