A report on Wall Street Journal revealed that China suggested on China-US trade negotiation last Wednesday that China is open to easing its policies that govern access to its cloud computing market, and considers allowing American companies to enter the market. Sources said, Chinese negotiators held a meeting with their representatives from the leading cloud services in the United States including Microsoft and Amazon.

The companies, however, need to form joint ventures with a Chinese firm to operate in the country. The Chinese government's restriction deterred many investors from operating in China for fear of being forced to divulge their technologies.

The report also said that Premier Li Keqiang assured that they are open to the idea that foreign firms will be allowed to own data centers in China's free-trade zones and give them better access to the cloud-computing market.

At present, foreign cloud service companies must license technology to Chinese partners in exchange for the right to operate in China, and also claim to store some information in China.