Amazon.com Inc. (AMZN) is cutting deals to comply with Chinese law.
The company has sold about $301 million worth of "certain physical infrastructure assets" to Beijing Sinnet Technology, the Beijing-based internet services firm said in a regulatory filing Monday, Nov. 13.
But Amazon made it clear that it has no plans to fully exit its China Amazon Web Services business anytime soon. In a statement to TechCrunch, Amazon said it did not sell all of its AWS business in China and "remains fully committed to ensuring Chinese customers continue to receive AWS's industry leading cloud services."
Amazon said it sold "certain physical infrastructure assets" to Sinnet in order to comply with Chinese law that forbids non-Chinese companies from owning or operating some kinds of cloud services technologies in the country.
Amazon signed a deal with Sinnet in August 2016 to provide AWS services for China after the company launched its cloud services there in 2014. Sinnet said the pending purchase would help it to "comply with China's laws to further improve the company's AWS cloud services."
Amazon stock gained 0.26% to $1,132.06 in premarket trading Tuesday.
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