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&gt; • Is it possible to use Pulumi locally within China without any access to the Pulumi Service (given that we would host the state files ourselves)?
This at least should be possible. I'm not sure how the state firewall would interact with the Pulumi service outbound, or Azure inbound.

I have found <https://github.com/pulumi/pulumi-az-pipelines-task/issues/79|evidence> that inbound traffic to China Azure with Pulumi deployments is possible. But one never knows if rules change. So it's always good to have a backup plan that does avoids crossing the firewall.
So if can work with hosting the state file ourselves, that's at least one backup option (although not preferable IMO).

For further reading: <https://www.linkedin.com/pulse/things-consider-during-transition-azure-china-regions-radu-vunvulea/>
"Once you have the account created, your IT global teams can manage the Azure Subscription(s) as they would be from any other Azure Regions using a dedicated Azure Portal and services endpoint for Azure China Regions."