Amazon isn't leaving China

Amazon isn't leaving 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.

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

An AWS spokesperson told CRN that the company "did not sell its business in China" and that it "remains fully committed to ensuring Chinese customers continue to receive AWS's industry-leading cloud services".

Amazon launched its web services business - better known as AWS - in China in 2014.

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.

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Amazon isn't the only one to make decisions based off a desire to stay in China. Microsoft already operates its Azure cloud service in China with the China-based company 21Vianet Group.

AWS has another hardware venture with the provincial government in Ningxia located in the northwest region of China.

The 2 billion yuan (US$301.2 million) transaction was arranged in order to comply with national security laws that prevent non-Chinese companies from owning certain critical infrastructure assets, including those involved with the delivery of cloud services.

The U.S. ecommerce giant signed a deal to allow Sonnet use AWS services in China in August 2016. 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". "The Chinese government is blatantly flaunting the rules of trade, including but not limited to their completely unreasonable rules on cloud computing". But like its peers, the company has had trouble making headway in China, which is dominated by local tech giants Alibaba and Tencent Holdings Ltd.

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