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Alibaba Slides on Report U.S. Is Probing Cloud Arm for Risks

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WATCH: The U.S. Commerce Department is investigating whether the Chinese government can gain access to data of U.S. clients through Alibaba’s cloud arm. Bloomberg’s Stephen Engle reports.Source: Bloomberg

Alibaba Group Holding Ltd. fell more than 4% after Reuters reported that the U.S. is reviewing potential threats to national security posed by its cloud service, one of the world’s largest.

The Commerce Department’s Office of Intelligence and Security is examining the way the business, known as Alicloud, stores and handles clients’ data and whether China could gain access to that information, Reuters reported, citing three people briefed on the matter. The review encompassed personal data as well as intellectual property, the news agency reported.