By 2020, which is not that far away, the aggregate market size of China’s cloud computing industry is expected to hit 686.6 billion yuan (about $103.6 billion), according to Forward Intelligence. China’s cloud computing industry has experienced strong growth since 2010, with a market size reaching 178.2 billion yuan in 2016, up 18.8 percent annually.

The major public cloud providers saw this coming, and most already have major points of presence in China. Moreover, China’s late-to-the-cloud upstart, , is already getting a great deal of interest from Chinese companies looking to benefit from use of the public cloud. 

For enterprises outside China, at issue is the ease of trade with China. Although many businesses import and export to China, information sharing, legal practices, and political issues have been problematic. That’s made foreign companies wary of using cloud providers in China, even subsidiaries of American providers.

First the bad news: Foreign-invested cloud computing services operating in China need to be aware of the restrictions on data governance and other legal issues. Even if you have a local partner in China, US companies should consider the legal compliance of your cooperation agreement, including qualification compliance, data storage restrictions, and other regulatory policies.