China is the world's second-largest market for cloud services and also the fastest-growing market with a growth rate of over 30 percent.

According to the " White Paper On Cloud Computing (2022)" released by the China Academy of Information and Communications Technology (CAICT), the overall cloud computing market in China experienced rapid development in 2021, reaching a market size of 322.9 billion yuan (), an increase of 54.4 percent compared to 2020. Among them, the public cloud market size grew by 70.8 percent to 218.1 billion yuan (), expected to become a major driving force for the growth of the cloud computing market in China in the coming years.

In terms of industrial structure, China has a well-established industrial chain of cloud computing. The upstream sector consists of core hardware (chips, memory, etc.) and IT infrastructure equipment (servers, storage devices, network equipment, etc.). The midstream sector includes Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) operations. The downstream sector consists of various enterprises or organizations that use cloud services.

In 2021, the Ministry of Industry and Information Technology (MIIT) issued the "14th Five-Year Plan for the Integrated Development of Informatization and Industrialization", proposing the cultivation and promotion of "cloud solutions" for industrial equipment, focusing on key equipment such as high-energy-consuming devices, general power equipment, and new energy equipment. The plan aims to accelerate the cultivation of high-quality "cloud solutions" for these equipment. Various industries are accelerating the integration of cloud computing with their industries to achieve networked collaboration in the supply chain and upstream-downstream businesses, thereby accelerating the digital transformation of enterprises.

In terms of regional distribution, apart from Beijing and Guangdong, cloud computing enterprises are also emerging in western regions such as Sichuan and Shaanxi, influenced by the policy of "channeling more computing resources from the eastern areas to the less developed western regions". This has sparked a wave of development in cloud computing across the country.