AWS also has a separate hardware venture in China and is partnered with the Ningxia provincial government in the north-west part of the country though all of Amazon's public cloud services are managed exclusively by Sinnet.
Beijing Sinnet Technology said Tuesday it would buy parts of Amazon's cloud business in China for up to 2 billion Chinese yuan ($301 million), but the US e-commerce giant said it was not exiting the world's second-largest economy.
A Cyber Security Law (CSL) came into effect back in June, requiring certain companies to hold data within China and to undergo on-site security laws. It is recommending new security measures and increasing observation of cross-border data transfers. 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. AWS is significantly ahead of the competition across the world, but in China it must operate via local partners due to regulation.
According to the company, it is selling hardware to comply with laws that forbid ownership or operation of certain types of cloud technology. Amazon confirmed that it will sell a certain physical property and it still owns the intellectual property for AWS worldwide. "We're excited about the significant business we have in China and its growth potential".
In August 2016, Amazon signed a deal to let Chinese tech firm Sinnet operate services provided by Amazon Web Services (AWS) in China.
More recently, telecoms equipment giant Huawei announced plans to take on AWS and Alibaba with its own cloud platform.