Don't get me wrong, I am not xenophobic by any means and am even not violently opposed to offshore development or data centers. The problem is that China is the capital of corporate espionage and the worst offender in the world of not respecting the intellectual property of others.
This is a big win for Microsoft Azure and Amazon unless I missed similar announcements from them (which I doubt).
The first mission of a Cloud Computing provider is to provide security of the data and I just don't see that happening if the data is in China.