Beijing Sinnet Technology Co., a Chinese partner of Amazon.com Inc. (AMZN) - Get Report, reached an agreement to buy Amazon Web Services' China business for as much as 2 billion yuan ($300 million). Amazon, however, denied reports that its AWS business was withdrawing from China.
"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," Amazon said in a statement. "Chinese law forbids non-Chinese companies from owning or operating certain technology for the provision of cloud services. As a result, in order to comply with Chinese law, AWS sold certain physical infrastructure assets to Sinnet, its longtime Chinese partner and AWS seller-of-record for its AWS China (Beijing) Region. AWS continues to own the intellectual property for AWS Services worldwide.
"We're excited about the significant business we have in China and its growth potential over the next number of years, " Amazon added.
Amazon Web Services was launched in China in 2014.
Watch More with TheStreet:
- Even Michael Lewis Doesn't Get Bitcoin Pandemonium
- What Under Armour's CEO Told Jim Cramer
- What Losing an Election Taught the Founder of Girls Who Code About Bravery
- Shark Tank Star Kevin O'Leary Reveals How to Buy a Fraction of a Stock Share