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AWS isn't exiting China, but Amazon did sell physical assets to comply with Chinese law

AWS isn't exiting China, but Amazon did sell physical assets to comply with Chinese law
From TechCrunch - November 13, 2017

Amazon has denied reports that it is withdrawing its AWS business from China, but the firm did admit that it has been forced to sell some physical assets to its local partner.

The U.S. firm appeared to have exited the country afterThe Wall Street Journal andReutersreported thatBeijing Sinnet, the partner that operates AWS China, had notified investors of its acquisition of the business for2 billion yuan, or $300 million.

Some wires have been crossed in process, however, sincean Amazon spokesperson clarified to TechCrunch that the firm remains committed to China but was forced to offload certain physical infrastructure assets in order to comply with Chinese law.

Heres the companys statement in full:

No, AWS did not sell its business in China and remains fully committed to ensuring Chinese customers continue to receive AWSs industry leading cloud services. Chinese law forbids non-Chinese companies from owning or operating certain technology for the provision of cloud services. As a result, in order to comply with Chinese law, AWS sold certain physical infrastructure assets to Sinnet, its longtime Chinese partner and AWS seller-of-record for its AWS China (Beijing) Region. AWS continues to own the intellectual property for AWS Services worldwide. Were excited about the significant business we have in China and its growth potential over the next number of years.

Note: This post has been updated to reflect the Amazon statement

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