Amazon Web Services (AWS) is selling some of its physical infrastructure in China to a local partner in order to comply with local laws, it has emerged. Ltd.'s statement of purchasing its cloud-computing business.
Sinnet said in a regulatory filing on Monday that the purchase, which is still pending, would help it "comply with China's laws to further improve the company's AWS cloud services" in terms of quality and security.
"In order to comply with Chinese law, AWS sold certain physical infrastructure assets to Sinnet", an AWS spokesman said on Tuesday, adding AWS would still own the intellectual property for its services worldwide.
The company was excited as well on the significant business they have in China and its growth potential over the next several years.
TechCrunch contacted Amazon for comment but did no hear back at the time of writing.
Amazon launched its web services business - better known as AWS - in China in 2014.
As Sinnet said, the deal is meant to help AWS comply with local terms and conditions, which could point to the increasing regulatory assessment from the Chinese government who is trying to further strengthen their control over the internet in the country.
Chinese regulators are tightening rules on foreign data and cloud services, including new surveillance measures and increased scrutiny of cross-border data transfers.
Other legislation sees it work with Sinnet but also ChinaNetCenter, which provide the internet data centre and ISP services to deliver AWS's cloud. We'll update this article with any updates from Amazon. 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 changes are linked to new national cyber laws that came into effect in 2017, which make network providers liable for content deemed risky or offensive to "socialist values".