That's a good point! Then we raise the question one level up: "does the current law regarding storage of sensitive information make sense?" It's a never ending story for those who like to delve in these sort of things.
For all what it's worth: yes. The larger the cloud, the larger the motivation for enemies to attack it. And in this case, the enemy is China (and, for European companies, also the US/FVEY alliance) - all of which have already been caught multiple times doing industrial espionage.
Core company secrets belong on premises of the company owning the secret, not in a cloud where it is fair game for security services and criminals of all kinds and nations.
