A congressional commission warned U.S. companies that leveraging China-based cloud computing services posed a security risk.  While some agree with the warning, others are concerned that China could retaliate.

As reported in CSO, “The U.S.-China Economic and Security Review Commission released its annual report to Congress this week, urging lawmakers and the President Barack Obama administration to take action to curtail the Chinese government’s ‘large-scale cyberespionage campaign against the United States.’”

China-based cloud computing services are a particular threat to U.S. companies.  This is due to the relationship between China’s Ministry of State Security (the equivalent of the U.S. National Security Agency) and the Chongqing Special Cloud Computing Zone.  “The ties between the two represent a ‘potential espionage threat to foreign companies that might use cloud computing services provided from the zone or base operations there.’”

As of now, most US-based companies are not likely to leverage China-based cloud providers, so I’m not sure this news is earth shattering.  Indeed, I suspect that the existing fear around leveraging public clouds will make clouds based overseas unattractive to US-based companies.

However, there could be a time in the future when offshore cloud providers are able to provide better pricing for similar services.  When that occurs, those looking for cheap clouds may have to consider the cost of the risk as well.