The Seattle company denies that it has decided to abandon its cloud division in the Asian country.
AWS has become a key part of Amazon , the business that balances the narrow balance of income and expenses of the company to get them to turn into profits. Beyond its role in the company itself, AWS is, at the market level, the leader in the cloud. Hence, the rumors that the company could have sold its business in the cloud in China in the last few hours generated so many headlines.
Media such as the Reuters news agency reported that Sinnet Technology , Amazon’s partner in this field, had submitted a form in which it announced the purchase of AWS for 2,000 million yuan, some 301 million dollars , on the understanding that this was finished the Seattle business in China. However, the same form specified that the purchase would serve to “comply with local laws and regulations and advance the improvement of quality of services and safety.”
This is the key point that would explain this operation, according to the statement that the company has sent to TechCrunch . In the text, Amazon strongly denies that they have sold their unit in the country, reiterating its commitment to customers in China. Yes, they have sold, they explain, part of their physical infrastructure to their partner, Sinnet, to comply with local legislation , which prohibits foreign companies from owning or operating part of the technology used in cloud development.
Behind all this is, therefore, the changes in the laws of the country, which in the last year have changed to give greater control to the government both over companies from outside China and, above all, in internet services and the like .