Chinese firm Sinnet Technology has announced that it is going to acquire all the assets of Amazon Web Services (Chinese Division) for 2 billion Yuan or $301 million approximately. The assets include servers and all other IT Infrastructure based on those devices.
Sources close to Cybersecurity Insiders say that the agreement on this issue has already been finalized on November 10 and conformity on the sale of the assets in installments is in progress. After the purchase Sinnet is planning to provide and operate cloud services based on Amazon Cloud Technology of China.
Early this year, Chinese government formulated a new rule saying that all foreign cloud computing providers entering china markets should offer Infrastructure as a Service (IAAS) in partnership with Chinese enterprises.
After the announcement of the new rule, Microsoft signed a partnership with CenturyLink and Oracle made an agreement with Tencent in order to continue doing business in the most populous region of Asia. Apple also announced that it is going to transfer the data of its customers to a government agency in June this year.
So, in order to comply with the local laws, AWS has signed an agreement with Sinnet, a channel partner since July 2016.
Note- As per the new law all the data related to Chinese customers/citizens should be retained in China and should not be carried to foreign shores. And it includes economic, scientific and technology-based data as well- all in the interest of Public and National Security.