Amazon’s business partner, Beijing Sinnet Technology Co, is about to purchase Amazon’s Chinese web services for $310 Million USD.
Chinese regulators are tightening rules on foreign data and cloud services, including new surveillance measures and increased scrutiny of cross-border data transfers.
Chinese cyber laws mean providers are liable for content deemed dangerous or offensive to socialist values is one of the reasons that Amazon may have made the deal as sources cite the purchase a result of ensuring compliance with local laws and regulations to improve service and security.
Cloud services in China is a competitive field with Alibaba Group Holdings cloud unit which opened in 2016 making a large impact on the company.
Earlier this year the buyer Beijing Sinnet Technology Co shut down VPN’s and services on its networks that allowed users to work around China’s great firewall after being directly instructed by the Chinese government.