Alibaba Cloud could face security concerns similar to Huawei as it expands in international regions. The current U.S. administration has put pressure on allies to ensure that sensitive national infrastructure does not use Chinese technology. This will limit the usage of Alibaba Cloud in many areas. It also negatively impacts the brand image of Alibaba Cloud. Corporate clients who are risk averse would rather pay a premium to get AWS or other cloud providers instead of using Alibaba Cloud.