Chinese technology firm Xunlei plans to launch a cloud computing1 service in the United States and Europe next year, aiming to compete in Amazon's home market, Xunlei's chief executive said recently.

The venture adds to a stream of Chinese technology brands that are expanding into developed markets. Huawei, the No. 3 global smartphone brand, said it will increase its U.S. presence by selling through American telecom carriers in 2018.

Xunlei launched its OneCloud service in August, which it says lowers costs for photo storage, video and other functions by having users contribute idle bandwidth and storage capacity.

"Hopefully we will start to do business in the United States market and European market in the first half of next year," CEO Chen Lei said in a telephone interview.

Cloud computing is growing fast in China but access for foreign providers is limited by official restrictions2 on data handling.

Apple Inc. announced in July it would open a data center in China to comply with requirements that information about Chinese citizens be stored in the country. In November, Amazon Inc. sold the hardware for its cloud business in China to a local partner but said it retains ownership of the intellectual property behind it.