Amazon selling off Chinese cloud hardware amid crackdown

Amazon selling off Chinese cloud hardware amid crackdown

Amazon Web Services (AWS) is selling some of its physical infrastructure in China to a local partner in order to comply with local laws, it has emerged.

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 US e-commerce giant said it was not exiting the world's second-largest economy.

An AWS spokesperson told CRN that the company "did not sell its business in China" and that it "remains fully committed to ensuring Chinese customers continue to receive AWS's industry-leading cloud services".

According to press reports, Amazon is only selling "certain physical assets" and the deal will allow Sinnet to better comply with Chinese laws.

Amazon added: "AWS continues to own the intellectual property for AWS Services worldwide".

The deal between Amazon and Sinnet is possibly connected with what is called the Great Firewall of China, the government's increasingly vice-like grip over Internet access in the country.




AWS has another hardware venture with the provincial government in Ningxia located in the northwest region of China.

Amazon controlled over 40 per cent of the global market for public cloud services in 2016, well ahead of Microsoft Corp and Alibaba, according to Gartner estimates.

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.

Amazon's decision casts a shadow over similar ventures in the country.

Big name tech companies in the US often bend over backward to either attempt to penetrate the highly protected Chinese market, or maintain a somewhat established presence. Foreign firms have repeatedly complained about the biased regulations in China that favor the local companies.

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

Related Articles

  • $150 Mask Fools iPhone X Facial Recognition

    $150 Mask Fools iPhone X Facial Recognition

    Bkav researchers began testing Face ID as soon as the iPhone X was released to them last week. We also still don't know how legitimate Bkav's claims really are.
    Misfiring Italy fail to reach World Cup as Sweden go through

    Misfiring Italy fail to reach World Cup as Sweden go through

    This Monday, November 13, 2017 (11:45 AM Pacific) Italy will host Sweden at the San Siro for the second leg of a UEFA World Cup qualifier play-off.
    Star Wars' Millennium Falcon parked near golf course in England

    Star Wars' Millennium Falcon parked near golf course in England

    It was last seen being landed on a mysterious planet by heroine Rey and Chewbacca while searching for the missing Skywalker. Filming for 2015's "The Force Awakens" also took place in the United Kingdom , but at Pinewood Studios in Buckinghamshire.
  • ABS announce win for 'Yes' vote in postal survey on marriage

    ABS announce win for 'Yes' vote in postal survey on marriage

    A private member's bill will be debated in Parliament , with Prime Minister Malcolm Turnbull pushing for a vote before Christmas. A handful of MPs have vowed to ignore the public's will and vote against the bill anyway, but they are few and far between.
    OnePlus 5T Appears On Geekbench, Confirms Snapdragon 835 Processor And 8GB RAM

    OnePlus 5T Appears On Geekbench, Confirms Snapdragon 835 Processor And 8GB RAM

    Coming to the specs , the 5T will have the Snapdragon 835 SoC, 6GB/8GB of RAM, 64GB/128GB storage, Adreno 540 GPU inside. OnePlus 5 is likely to be a slightly better than the existing OnePlus 5, which was launched in June this year.
    Opens New Home & Accessories Floor and Blue Box Cafe at Its Fifth

    Opens New Home & Accessories Floor and Blue Box Cafe at Its Fifth

    Some include an array of actual Tiffany boxes adorned now with chrome figurines and diamonds or pieces of the homeware. The restaurant is decked out with decor in the chain's signature robin's egg blue, accented with silver and white.
  • IPhone X Plus Launch Date Set For 2018

    For reference, the current iPhone X has a 5.8-inch OLED display, whereas the iPhone 8 Plus has a display size of 5.5 inches. Both the 64GB and 256GB versions have been affected and this is the same for both Silver and Space Grey devices.
    One person in custody after stabbing at Mall of America, authorities say

    One person in custody after stabbing at Mall of America, authorities say

    The second victim, who was believed to be a family member or friend of the other victim, was stabbed after intervening. Their alleged assailant, Mahad Abdiaziz Abdirahaman , is being held on suspicion of first-degree assault.
    Taylor Swift's 'reputation' operates as a catchy Burn Book

    Taylor Swift's 'reputation' operates as a catchy Burn Book

    As of press time, analysts believe " reputation " can sell upwards of 1.37 million pure U.S. copies in its first week of release.
  • Trump on North Korea crisis: I'd never call Kim 'short and fat'

    Trump on North Korea crisis: I'd never call Kim 'short and fat'

    Trump followed up his freaky tweet by telling reporters that it would be a "good thing" for him and dictator to become friends. South Korea was keeping its "full combat readiness against North Korea's possibility provocations", its military said Monday.
    Hasbro reportedly offered to buy Mattel

    Hasbro reportedly offered to buy Mattel

    Hasbro made the takeover approach in recent months, these people said, as Mattel has struggled to revive some of its faded brands. Mattel's brands include the Barbie doll, Hot Wheels and Matchbox cars, Fisher-Price toys and American Girl dolls.
    Iran ballistic missile programme non-negotiable

    Iran ballistic missile programme non-negotiable

    The French leader alleged that it was " obviously is an Iranian missile", which "shows precisely the strength of their program". He raised the prospect of possible sanctions with regard to those activities.