Amazon is reportedly selling a portion of its business to a Chinese technology company for roughly $300 million in order to comply with law in that country.
Amazon is selling a portion of its business to a Chinese technology company for roughly $300 million in order to comply with law in that country, according to multiple recent reports.
Specifically, the cloud computing division called Amazon Web Services (AWS) is giving up “certain physical infrastructure assets to” Beijing Sinnet Technology Co, like computing equipment, reports Reuters, citing an Amazon spokesman.
China favors domestic firms over foreign ones with paternalistic policies.
“Chinese law forbids non-Chinese companies from owning or operating certain technology for the provision of cloud services,” AWS said, according to The Wall Street Journal. “As a result, in order to comply with Chinese law, AWS” made the business deal.
Amazon will still possess the intellectual property for its AWS services.
Big name tech companies in the U. S. often bend over backward to either attempt to penetrate the highly protected Chinese market, or maintain a somewhat established presence.
Beijing Sinnet Technology, Amazon’s partner in China, told customers months ago to stop using illegal virtual private networks (VPNs), which can offer secure, private networks for users, but also circumvent internet censorship in the country.
