Beijing Sinnet Technology will buy Amazon’s web services business in China for up to R4.4 billion, reported Reuters.
Sinnet is Amazon’s partner in China and operates the company’s services.
It said the acquisition will help the business comply with local laws and regulations. It would also “further improve service quality and security”.
China’s regulators have laid down stricter rules for foreign cloud service providers, with more scrutiny of cross-border data transfers and additional surveillance measures.
The country’s laws also make companies liable for content considered dangerous or offensive to socialist values.
Earlier this year, Sinnet received instructions from the Chinese government to shut down VPN services that let subscribers circumvent China’s “Great Firewall”.