Google seeks local partners to run cloud business in China, report says

Google Inc is in talks with Chinese internet companies, such as internet giant Tencent Holdings Ltd and cloud computing and big data service provider Inspur Group, to launch its cloud services in the Chinese mainland, according to a report by Bloomberg.

Three Chinese companies were shortlisted as its partnership candidates in late March, after the talks started earlier this year, the report, citing an anonymous person familiar with the issue, said.

As China's laws require digital information to be stored within the country, Google, having no data centers in the Chinese mainland, needs to use the domestic data centers and servers provided by local partners to offer its internet-based services, such as Drive and Docs, to the market.

In addition, building a partnership with local giants like Tencent will help Google better return to the market and rebuild its presence as well as compete with Amazon.com Inc, Microsoft Corp and Alibaba Group, the world's largest cloud service providers, the report said.

China is the world's second-largest cloud market, with the data center and cloud remaining dominated by local Chinese firms, according to a report by Synergy Research Group. The country has set a goal of building a cloud computing industry worth 430 billion yuan by 2019, said a government plan unveiled last year.