AWS just sold some of its cloud computing infrastructure in China

Andrew Cummings
November 14, 2017

The company confirmed that it has sold off its Amazon Web Services (AWS) infrastructure to Sinnet, its local technology partner.

In a statement to TechCrunch, the online retail giant said it is not parting ways with its business in China, and will continue to offer the industry-leading cloud services to its customers in China.

But Amazon said that it is only selling "certain physical assets" and still owns the intellectual property for AWS worldwide.

Sinnet said in a regulatory filing on Monday that the purchase, which is still pending, would help it "comply with China's laws to further improve the company's AWS cloud services" in terms of quality and security. "We're excited about the significant business we have in China and its growth potential".

AWS first launched a China service in 2014, but must operate via local partners to comply with Chinese law, with companies required to store data locally in legislation enacted in June. AWS runs a separate hardware venture in collaboration with the Ningxia provincial government in China's northwest, according to Reuters.

Whereas the European Union sees foreign cloud services as a source of revenue - fining them billions whenever they can think up some legal infraction they may have committed - China is obliging foreign cloud service providers to sell their assets to China-based companies which come under state control.

Sinnet has told customers it has been told by the government to close VPNw which circumvent the Great Firewall.

Due to increased regulations surrounding online data in China, Amazon has announced that it will sell off the hardware now powering its public cloud business in the country.

Foreign firms in China have long complained about local restrictions that appeared to favour domestic players.

Amazon shares acquired 50 cents to $1,129.67 mid-morning Tuesday.

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