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AWS just sold some of its cloud computing infrastructure in China

14 November 2017

Amazon is committed to establish in China, and is looking forward for significant business opportunities and growth potential for the next few years. "AWS sold certain physical infrastructure assets to Sinnet", it said. Thus, to comply with the Chinese law, it sold "certain physical infrastructure assets" to Sinnet, who has been operating the Amazon services since August 2016.

The U.S. company has agreed to sell its China-based web services business to Beijing Sinnet, the local partner that operates it, according to a filing on the Shenzhen Stock Exchange that was noted by The Wall Street Journal and Reuters.

The transaction's goal is to fully comply with China's laws and regulations, while improving the security and service quality of Sinnet's operation of Amazon Web Services. In June of this year, new laws came into effect that now require all foreign businesses operating in China to store their user data locally and this has been a cause for concern among worldwide companies currently doing business in the region. Sinnet urged its customers to avoid using virtual private networks (VPNs), which outsmart China's Great Firewall. Laws that came into effect in June require firms to store data locally.

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.

However, the Chinese landscape is different, dominated mainly by local tech giants such as Alibaba and Tencent.

Global firms in China, including Apple Inc, have this year transferred data to Chinese ventures overseen by local authorities.

On Monday, Amazon shares closed up 0.34% at $1,129.17.

AWS just sold some of its cloud computing infrastructure in China