The Chinese government’s twelfth five-year plan listed public cloud computing as a national-level strategic technology and the government has encouraged investment in the last five years by providing direct funding or policy incentives such as tax reductions. Around 10 provincial governments will build 30 large data centers of more than 1 000 square meters each to support companies by offering public cloud services locally.
In the short-term more government-involved public cloud computing service data centers will get online, but many of them will not be able to make their businesses profitable, and they will be forced out of the market — many by being sold to other providers — before they can expand. Anyone who does survive will have the opportunity to demonstrate a profitable business model or real innovation.
memeburn.com: "Behind the Great Firewall: 5 top Chinese tech predictions beyond 2013"