AWS just sold some of its cloud computing infrastructure in China

Posted November 15, 2017

It follows a prior arrangement with Sinnet, struck in 2016, which allowed the Chinese firm to operate Amazon Web Services (AWS) products in China.

US e-commerce heavyweight Amazon.com will sell equipment for its Chinese cloud services to a local partner to comply with new laws that have tied the hands of worldwide operators reliant on the free flow of data. "As a result, in order to comply with Chinese law, AWS" made the business deal.

"Chinese law forbids non-Chinese companies from owning or operating certain technology for the provision of cloud services", AWS said, according to The Wall Street Journal.

"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", the statement read.

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Amazon isn't the only one to make decisions based off a desire to stay in China.

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.

With Alibaba's cloud services expanding rapidly, it looks as if China is resolved to sit on its own cloud.

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.

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

Foreign firms in China have long complained about local restrictions that appeared to favour domestic players.

They would go under the strict regulatory scrutiny from the Chinese government. The rule makes it hard to use data globally, greatly complicating operational strategies for many overseas companies, and countries including the US have voiced concerns about the legislation's enforcement.

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

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