AWS sells China hardware to local cloud partner

Violet Tucker
November 15, 2017

The company confirmed that it has sold off its Amazon Web Services (AWS) infrastructure to Sinnet, its local technology partner.

To comply with Chinese legislation, however, Amazon sold certain physical infrastructure to its local partner.

A spokesperson for AWS said Tuesday that to comply with the laws in China, AWS sold some physical infrastructure assets to its partner Sinnet, adding that AWS would remain the owner of intellectual property for its worldwide services.

Amazon Web Services confirmed in a statement reported by WSJ that this move was meant to meet compliance requirements in China.

China's internet safety laws, which entered into force in June, require domestically gathered customer data that is stored locally or removed from the country to be screened by authorities. "‎We're excited about the significant business we have in China and its growth potential over the next number of years".

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Amazon Web Services (AWS) has sold some of its Chinese cloud assets in a bid to comply with increasingly strict regulations in the country. AWS runs a separate hardware venture in collaboration with the Ningxia provincial government in China's northwest, according to Reuters. Microsoft has its Azure cloud services operating in partnership with 21Vianet Group, which is based in China.

Earlier this year Apple transferred data to China-based companies.

In August Sinnet told customers it would begin shutting down VPNs and other services on its networks that allow users to circumvent China's Great Firewall, citing direct instructions from the government.

The move places a big shadow over foreign ventures of a similar nature in China. The rule makes it hard to use data globally, greatly complicating operational strategies for many overseas companies, and countries including the USA have voiced concerns about the legislation's enforcement.

Other reports by Guamnewswatch

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