Amazon.com Inc (NASDAQ:AMZN) has agreed to sell part of its cloud computing business in China, to Beijing Sinnet Technology, in a deal worth 2bn Yuan or US$301mln.
It follows a prior arrangement with Sinnet, struck in 2016, which allowed the Chinese firm to operate Amazon Web Services (AWS) products in China.
According to press reports, Amazon is only selling ‘certain physical assets’ and the deal will allow Sinnet to better comply with Chinese laws.
In a TechCrunch article it was explained that Chinese law does not allow certain technologies to be owned by non-Chinese companies, so a transaction was required to continue the partnership between the companies in China.
"AWS continues to own the intellectual property for AWS Services worldwide,” the company was quoted saying in the TechCrunch report.
“We're excited about the significant business we have in China and its growth potential over the next number of years."