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

From Techcrunch


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 after The Wall Street Journal and Reuters reported that Beijing Sinnet, the partner that operates AWS China, had notified investors of its acquisition of the business for 2 billion yuan, or $300 million.

Some wires have been crossed in process, however, since an 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.

Here’s the company’s statement in full:

No, AWS did not sell its business in China and remains fully committed to ensuring Chinese customers continue to receive AWS’s industry leading cloud services. Chinese law forbids non-Chinese companies from owning or operating certain technology for the…

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