China Is Sitting On The Cloud

Lucy Hill
November 15, 2017

In a statement to TechCrunch, the online retail giant said it is not parting ways with its business in China, and will continue to offer the industry-leading cloud services to its customers in China.

"‎We're excited about the significant business we have in China and its growth potential".

USA e-commerce heavyweight will sell equipment for its Chinese cloud services to a local partner to comply with new laws that have tied the hands of global operators reliant on the free flow of data.

The deal could be linked to increasing regulatory scrutiny from the Chinese government who is trying to tighten their grip on the internet in the country.

Laws that took effect during June require companies to store their data locally.

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

Protesters tag Trump, Duterte as 'fascists'
The pair are set to have a face-to-face meeting in the coming days when Trump finishes up his Asia trip with a stop in Manila. Duterte can expect blanket support from his ASEAN colleagues, many of whom are also shadowed by human rights controversies.

Amazon said via a post on its website that its China public cloud services were managed exclusively by Sinnet. 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.

The U.S. ecommerce giant signed a deal to allow Sonnet use AWS services in China in August 2016.

The move places a big shadow over foreign ventures of a similar nature in China.

According to the company, it is selling hardware to comply with laws that forbid ownership or operation of certain types of cloud technology.

Multinational companies doing business in China, including Apple, have transferred data in 2017 to Chinese companies that are overseen by local governments.

Beijing Sinnet Technology Co. told the Wall Street Journal that the asset acquisition was an attempt to "comply with our country's laws and rules and further improve the security and the service quality of the AWS cloud-computing service operated by the company".

Other reports by TheDailyFarc

Discuss This Article