Amazon sells AWS cloud assets in China amid tightening regulation

Mae Love
November 14, 2017

Both the Wall Street Journal and Reuters had reported that the China partner had notified investors that it was about to buy AWS's China business for 2 billion yuan ($301.2 million). That statement says "Chinese law forbids non-Chinese companies from owning or operating certain technology for the provision of cloud services".

"In order to comply with Chinese law, AWS sold certain physical infrastructure assets to Sinnet", a spokesman for the Amazon.com cloud-services unit said on November 14, adding AWS would still own the intellectual property for its services worldwide. The company signed a deal with Sinnet back in September 2016.

It looks like Amazon is removing itself from the Chinese cloud services industry on account of stringent new data laws that went live in the country earlier this year. "‎We're excited about the significant business we have in China and its growth potential over the next number of years".

Legal reasons appear to be the reason that Amazon is offloading the business.

Honor V10 to launch in China on November 28
Earlier, the Honor V10 had received 3C approval in China which also suggests that the Honor V10 would be arriving soon in China. The Honor 7X smartphone has a combo of 16MP+2MP lenses on the primary camera department, though the selfie snapper is of 8MP.

Indigo in trouble again? Airline apologises after passenger falls off from wheelchair
In what can be termed a miraculous escape, the disaster was averted after a wild boar hit the flight mid-takeoff. The flight was supposed to land at Hyderabad at 11.15 pm, but finally took off only at 1 am on Monday morning.

Tesco merger with Booker gets provisional approval from CMA
The competition regulator has provisionally cleared Hertfordshire-based Tesco's £3.7bn deal to buy wholesaler Booker. At the end of June, the companies requested a "fast track" referral to the next stage of the investigation.

In August Sinnet told customers it would begin shutting down VPNs and other services on its networks that allow users to circumvent China's Great Firewall, citing direct instructions from the government. It would also "further improve service quality and security".

Amazon was a late entrant to the Chinese cloud market which is dominated by local players like AliCloud and China Telecom.

AWS also has a separate hardware venture in China and is partnered with the Ningxia provincial government in the north-west part of the country though all of Amazon's public cloud services are managed exclusively by Sinnet.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER