China calls on Alibaba and Baidu cloud units to better prevent telecom fraud

SHANGHAI, Nov. 23 (Reuters) – China’s Ministry of Industry said on Tuesday that its cyberspace administration and police had summoned cloud units from Alibaba (9988.HK) and Baidu Inc to urge them to better prevent the fraud on telecommunications networks.

The cloud platforms of the two tech giants have allowed access to fraudulent websites, the Ministry of Industry and Information Technology said on Weibo, a Twitter-like microblogging service.

The statement comes amid a sweeping regulatory crackdown in China whose targets have included the sprawling tech sector and which has rocked the market capitalization of some of the country’s biggest companies, like Alibaba.

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China is building its own state-backed cloud system, while President Xi Jinping said in April that the country will crack down on telecommunications and internet fraud.

Alibaba and Baidu are required to “seriously fulfill their main responsibilities in the area of ​​network and information security,” the statement from the Ministry of Industry said.

The companies did not immediately respond to requests for comment.

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Reporting by Brenda Goh and Josh Horwitz; additional reporting by Beijing Newsroom and Tom Daly, edited by Louise Heavens

Our Standards: Thomson Reuters Trust Principles.

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