Amazon to Sell Its China Cloud-Computing Business

Amazon.com Inc.’s cloud-computing service is throwing in the towel in China.

Beijing Sinnet Technology Co., Amazon’s Chinese partner, said in a stock-exchange statement late Monday that it will buy Amazon Web Services’ China business for as much as 2 billion yuan ($300 million).

The buyout was an attempt to “comply with our country’s laws and rules and further improve the security and the service quality of the AWS cloud-computing service operated by the company,” Beijing Sinnet said.

AWS couldn't immediately be reached for comment.

Amazon and other U.S. companies, including Apple Inc., have faced pressure in China to comply with the government’s desire to further tighten the screws on its already heavily policed internet.

AWS customers in China were this year sent emails by Beijing Sinnet asking them to delete tools enabling them to circumvent the country’s vast system of internet filters. Some of the tools that clients use include virtual private networks, or VPNs.

Beijing Sinnet cited requests from China’s public security ministry and the industry and information technology ministry in making the demands on its customers.

“Sinnet is responsible for ensuring that its customers in China comply with local laws and their notice was intended to remind customers of their obligations,” an Amazon spokeswoman said via email at the time.

In the past, some U.S. firms have also spoken out about the uneven playing field for overseas providers in China’s cloud-computing industry.