Google is in talks with Tencent Holdings Ltd., Inspur Group and other Chinese companies to offer cloud services in the country, Bloomberg reports, citing people familiar with the discussions.
However, trade tensions between the United States and China may weigh on the talks, which began early this year, the report said.
China requires digital information to be stored in the country. This means that Google, which has no data centers in the country, must forge an alliance with local players to run its internet-based services, such as Drive and Docs.
The search giant pulled out of China in 2010 over censorship concerns, but is slowly rebuilding its presence in the country.
This year, it started building a cloud data center region in Hong Kong and opened an artificial intelligence research center in Beijing.
Google is also investing more in Chinese companies. It has arrived at a patent-sharing deal with Tencent, which will allow the two companies to jointly develop new technologies, Bloomberg said.
It has also been reported that Google plans to launch a version of its search engine in China that will block some websites and search terms, raising concerns among employees and some US lawmakers.
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