Ama­zon to sell China cloud ser­vices unit

The Sun (Malaysia) - - SUNBIZ -

BEIJING: Ama­zon.com Inc’s Chi­nese part­ner, Beijing Sin­net Tech­nol­ogy Co, said it would buy Ama­zon’s Chi­nese web ser­vices business for up to 2 bil­lion yuan (RM1.26 bil­lion), end­ing the US firm’s cloud-com­put­ing business in the coun­try.

Sin­net, which be­gan op­er­at­ing the Ama­zon ser­vices in Au­gust 2016, said in a fil­ing late on Mon­day the pend­ing pur­chase would help the unit “com­ply with lo­cal laws and reg­u­la­tions and fur­ther im­prove ser­vice qual­ity and se­cu­rity.”

Chi­nese reg­u­la­tors are tight­en­ing rules on for­eign data and cloud ser­vices, in­clud­ing new sur­veil­lance mea­sures and in­creased scru­tiny of cross-bor­der data trans­fers.

In Au­gust, Sin­net told cus­tomers it would be­gin shut­ting down VPNs and other ser­vices on its net­works that al­low users to cir­cum­vent China’s Great Firewall, 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 danger­ous or of­fen­sive to “so­cial­ist val­ues”.

In 2013, Ama­zon’s web ser­vices business signed agree­ments with pro­vin­cial gov­ern­ments in China, and has pre­vi­ously worked with some of China’s largest tech firms in­clud­ing Xiaomi Inc, Qi­hoo 360 Tech­nol­ogy Co Ltd and King­soft Corp Ltd. – Reuters

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