AWS denies selling its cloud business in China (but it is selling infrastructure)
Chinese law forbids non-Chinese companies from owning or operating certain technology for the provision of cloud services.
AWS has been forced to issue a statement after news emerged on the world’s largest public cloud provider selling its entire cloud business in China.
The company denied it is selling its Chinese business and has said it is only selling “certain physical infrastructure assets” to Beijing-based Sinnet Technology.
In a statement, AWS said: “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. Chinese law forbids non-Chinese companies from owning or operating certain technology for the provision of cloud services.
“As a result, in order to comply with Chinese law, AWS sold certain physical infrastructure assets to Sinnet, its longtime Chinese partner and AWS seller-of-record for its AWS China (Beijing) Region.
“AWS continues to own the intellectual property for AWS Services worldwide. We’re excited about the significant business we have in China and its growth potential over the next number of years.”
The “certain physical infrastructure assets” are being acquired by Sinnet in a deal worth up to 2bn Chinese Yuan or more than $300m.
The partnership between the Chinese company and AWS was forged in August 2016, when AWS tasked Sinnet with operating its services in China.
The purchase of the assets is still pending, according to a Sinnet regulatory filing. In the same document, the company said the acquired assets from AWS would help it “comply with China’s laws to further improve the company’s AWS cloud services”.