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Amazon isn't leaving China

15 November 2017

Amazon Web Services has sold some of its physical infrastructure assets in China to its domestic partner Beijing Sinnet, but says it will continue offering cloud services in the country. "As a result, in order to comply with Chinese law, AWS sold certain physical infrastructure assets to Sinnet, its longtime Chinese partner".

"In order to comply with Chinese law, AWS sold certain physical infrastructure assets to Sinnet", a spokesman for the Amazon.com cloud-services unit said on November 14, adding AWS would still own the intellectual property for its services worldwide.

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The e-commerce giant said it was not dropping its operations in the superpower, and added that it was retaining ownership of the vast majority of its intellectual property in the country. "‎We're excited about the significant business we have in China and its growth potential over the next number of years", the spokesperson said.

Amazon isn't the only one to make decisions based off a desire to stay in China.

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It follows a prior arrangement with Sinnet, struck in 2016, which allowed the Chinese firm to operate Amazon Web Services (AWS) products in China.

AWS has another hardware venture with the provincial government in Ningxia located in the northwest region of China. Companies targeted by the regulations are required to carry out a security self-assessment or obtain approval from the relevant regulator before transferring the controlled data overseas.

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This year in August, Sinnet told customers that it would shut down the VPNs and other services on its networks that helped users to get over China's Great Firewall. Amazon's Chinese equivalent, Alibaba, leads the way having launched its own public cloud service in 2009 before expanding globally. 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.

Amazon isn't leaving China