Amazon cloud assets will be sold to the firm’s Chinese partner Beijing Sinnet, according to recent reports. Amazon has issued a statement denying media reports of withdrawing its Amazon Web Services (AWS) business from China. However, the firm did confirm that it will sell computing equipment used for its cloud services in China to its local partner, Beijing Sinnet Technology, according to a report by The Wall Street Journal.
Beijing Sinnet Technology said in a Shenzhen stock-exchange statement that it will buy AWS’ China equipment for $300 million, according to industry reports.
The firm said, “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.”
The statement explained that 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,” the company spokesperson said.
According to a Reuters report, Amazon cloud business in China was already facing tougher rules, thanks to the country’s rigid Internet controls.
“In August, Sinnet told customers it would shut down VPNs and other services on its networks that allow users to circumvent China’s so-called Great Firewall system of censorship, citing direct instructions from the government,” the report said.
At the beginning of this year, AWS had opened an office in Dubai and works with local partners such as CSC and Redington Value.
Ramkumar Balakrishnan, president, Redington Value, said, “We have chosen to work with AWS so that we can provide our customers with a secure, reliable and flexible platform. Having an AWS team in the region for us to work with is great news, and will help us move even more customers to the cloud.”
