Amazon sells parts of cloud business in China for up to $301 million

Beijing Sinnet Technology said Tuesday the idea might buy parts of Amazon’s cloud business in China for up to 2 billion Chinese yuan ($301 million), nevertheless the U.S. e-commerce giant said the idea was not exiting the entire world’s second-largest economy.

In August 2016, Amazon signed a deal to let Chinese tech firm Sinnet operate services provided by Amazon Web Services (AWS) in China.

Sinnet said in a regulatory filing on Monday in which the purchase, which is actually still pending, might help the idea “comply with China’s laws to further improve the company’s AWS cloud services” in terms of quality in addition to security.

nevertheless Amazon said in which the idea is actually only selling “certain physical assets” in addition to still owns the intellectual property for AWS worldwide.

“No, AWS did not sell its business in China in addition to remains fully committed to ensuring Chinese customers continue to receive AWS’s industry leading cloud services. Chinese law forbids non-Chinese companies via 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 in addition to AWS seller-of-record for its AWS China (Beijing) Region,” Amazon said in a statement to TechCrunch.

“AWS continues to own the intellectual property for AWS Services worldwide. ‎We’re excited about the significant business we have in China in addition to its growth potential over the next number of years.”

The deal could be linked to increasing regulatory scrutiny via the Chinese government who is actually trying to tighten their grip on the internet from the country. Sinnet asked its customers earlier This specific year to stop using virtual private networks (VPNs), which are able to circumvent China’s Great Firewall.

some other U.S. firms have also faced a challenging situation in China. In July, Apple removed VPNs via its app store in China, amid the crackdown on such services by the government.

AWS has been a jewel from the crown for Amazon’s earnings in recent times in addition to a big reason why the company’s shares are up over 50 percent year-to-date.

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