Amazon to sell China cloud services unit

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