Amazon divests China cloud services

UPDATED: Amazon has issued the following statement following the original publishing of this story, which carried the headline, "Amazon sells off China cloud services arm". We have altered the headline to reflect this.

"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.  Chinese law forbids non-Chinese companies from owning or operating certain technology for the provision of cloud services.  As a result, in order to comply with Chinese law, AWS sold certain physical infrastructure assets to Sinnet, its longtime Chinese partner and AWS seller-of-record for its AWS China (Beijing) Region.  AWS continues to own the intellectual property for AWS Services worldwide. ‎We're excited about the significant business we have in China and its growth potential over the next number of years.” 

ORIGINAL STORY: Due to increased regulations surrounding online data in China, Amazon has announced that it will sell off the hardware currently powering its public cloud business in the country. 

The company's Chinese partner, Beijing Sinnet Technology Co LTD, revealed that it would buy AWS' public cloud computing unit in China for just over $300 million in a recent filing. 

A spokesperson for AWS offered further details on the upcoming sale, saying: 

“In order to comply with Chinese law, AWS sold certain physical infrastructure assets to Sinnet.  We're excited about the significant business we have in China and its growth potential.” 

Amazon's sale of the hardware used in its Chinese Public Cloud business comes at a time when the country's authorities are imposing new surveillance measures as well as increasing their examination of cross-border data transfers.  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 international companies currently doing business in the region. 

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.   

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