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AWS just sold some of its cloud computing infrastructure in China
15 November 2017, 01:22 | Gordon Grant
AWS sells China hardware to local cloud partner
China's internet safety laws, which entered into force in June, require domestically gathered customer data that is stored locally or removed from the country to be screened by authorities.
After some publications reported that AWS was leaving China entirely, the division of Amazon clarified to TechCrunch: "No, AWS did not sell its business in China and remains fully committed to ensuring Chinese customers continue to receive AWS's industry leading cloud services".
Beijing Sinnet Technology said Tuesday it would buy parts of Amazon's cloud business in China (AWS China) for up to 2 billion Chinese yuan ($301 million), but the USA e-commerce giant said it was not exiting the world's second-largest economy. "We're excited about the significant business we have in China and its growth potential over the next number of years".
Chinese regulators are tightening rules on foreign data and cloud services, including new surveillance measures and increased scrutiny of cross-border data transfers.
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Amazon isn't the only one to make decisions based off a desire to stay in China. Moreover, the deal would help to "comply with China's laws to further improve the company's AWS cloud services" based on quality and security. AWS runs a separate hardware venture in collaboration with the Ningxia provincial government in China's northwest, according to Reuters.
Amazon has sold some of its cloud computing infrastructure in China to its local partner in a deal worth $300m, a move it said was necessary in order to comply with the country's tech regulations. But the US company has to deal with lawsintroduced this year that mandate the storage of data within the country and bolster government control over the movement of information. Apple eliminated VPNs from its app store in July 2017, as Chinese government restricted the use of such services.
Sinnet said in a regulatory filing on Monday the move would allow the company to comply with China's legal framework.
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