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August 16, 2014

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Apple storing personal data on mainland

APPLE Inc has begun keeping the personal data of some Chinese users on servers in China’s mainland, marking the first time the tech giant has stored user data on mainland soil.

The data will be kept on servers provided by China Telecom Corp Ltd, the country’s third-largest wireless carrier, Apple said in a statement yesterday.

Apple attributed the move to an effort to improve the speed and reliability of its iCloud service, which lets users store pictures, e-mail and other data.

It also coincides with Apple’s bid to support its iTunes Store in China, where local downloads of audio and video have been steadily increasing.

The storage of user data on China’s mainland represents a departure from the policies of some technology companies, notably Google Inc, which has long refused to build data centers on the mainland due to what it says are censorship and privacy concerns.

“Apple takes user security and privacy very seriously,” the statement said. “We have added China Telecom to our list of data center providers to increase bandwidth and improve performance for our customers in China’s mainland. All data stored with our providers is encrypted. China Telecom does not have access to the content.”

The encryption keys for Apple’s data on China Telecom servers would be stored offshore and not made available to China Telecom, according to an insider.

Apple has claimed to have devised encryption systems for services such as iMessage that even Apple itself cannot unlock. But some experts have expressed skepticism that Apple would be able to withhold user data in the event of a government request.

“If they’re making out that the data is protected and secure that’s a little disingenuous because if they want to operate a business here, that would have to comply with demands from the authorities,” said Jeremy Goldkorn, director of Danwei.com, a research firm focused on Chinese media, Internet and consumers.

“On the other hand if they don’t store Chinese user data on a Chinese server they’re basically risking a ‘crackdown’ from the authorities.”

Goldkorn said data stored in the United States is subject to similar regulations where the government can use court orders to demand private data.

Technology companies seek to position data centers as close to their customers as possible to enable faster service speeds.

But some companies have opted not to situate servers in China’s mainland. Google and Microsoft Corp do not have servers for their Gmail and Hotmail services on the Chinese mainland.

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