AWS just sold some of its cloud computing infrastructure in China

AWS just sold some of its cloud computing infrastructure in China

An AWS spokesperson said in a subsequent statement: "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".

Amazon said on its website that its public cloud services in the country are exclusively managed by Sinnet. Amazon's Chinese equivalent, Alibaba, leads the way having launched its own public cloud service in 2009 before expanding globally. Sinnet said in the filing that the deal will help the service "comply with local laws and regulations and further improve service quality and security".

Both the Wall Street Journal and Reuters had reported that the China partner had notified investors that it was about to buy AWS's China business for 2 billion yuan ($301.2 million). Due to compliance issues, Amazon began operating AWS services in 2016 through its partner Sinnet. Sinnet asked its customers earlier this year to stop using virtual private networks, which are able to circumvent China's Great Firewall.

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AWS has a separate hardware venture in partnership with the Ningxia provincial government in China's northwest. But the USA company has to deal with lawsintroduced this year that mandate the storage of data within the country and bolster government control over the movement of information.

Apple, Facebook and Google have all made similar choices, some which show they are essentially selling out to China, a country with a lack of freedoms when it comes to the internet, the natural foundation of these tech companies' operations and services. Microsoft operates its Azure cloud services unit in partnership with China-based 21Vianet Group. Foreign firms have repeatedly complained about the biased regulations in China that favor the local companies.

According to Synergy, 80% of China cloud services are provided by China companies and about 50% of China based data centres are owned by China-based organisations.

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