Amazon isn't leaving China

Randall Padilla
November 15, 2017

Amazon's Chinese partner, Beijing Sinnet Technology Co, said it would purchase Amazon's Chinese web services assets for up to 2 billion yuan (A$394 million) to comply with Chinese regulations.

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".

"‎We're excited about the significant business we have in China and its growth potential". Amazon has not yet provided the reason behind this exit, but it may be due to the tightening rules on foreign data and cloud services by Chinese regulators.

Amazon isn't the only one to make decisions based off a desire to stay in China. He added this move was necessary for AWS to increase its other areas of business within the market.

Amazon said via a post on its website that its China public cloud services were managed exclusively by Sinnet. It said instead it was selling hardware to comply with laws that forbid ownership or operation of certain types of cloud technology. But the USA 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.

Last year Amazon signed a deal with Sinnet so it could operate its services in China, most notably Amazon Web Services.

The move places a big shadow over foreign ventures of a similar nature in China.

Microsoft, Apple, Oracle and IBM also face challenges in localising their data storage units in China because of new laws coming into effect.

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.

Other reports by AllAboutTopnews

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