(Bloomberg) — Amazon.com Inc. agreed to sell some of its Chinese cloud assets to its local partner but said it’s committed to a domestic market for internet-based computing that could be worth $30 billion.
Beijing Sinnet Technology Co. will buy servers and other unspecified “operational assets” in the country’s capital from Amazon Web Services for as much as 2 billion yuan ($302 million), it said in a filing to the Shenzhen stock exchange. The sale is intended to comply with government regulations and improve service, it said.
Amazon’s business in China has been hollowed out by the rise of local rival Alibaba Group Holding Ltd., which has come to dominate e-commerce and is expanding in cloud computing with new data centers. Amazon, the global leader in internet computing, is vying for a slice of domestic spending on cloud services and gear that IDC estimates will reach $30 billion by 2021. But the U.S. company has to deal with laws introduced this year that mandate the storage of data within the country and bolster government control over the movement of information.
On Tuesday, the e-commerce giant rejected media reports tying its asset sale to an imminent departure from the Chinese market. It said instead it was selling hardware to comply with laws that forbid ownership or operation of certain types of cloud technology.
“AWS did not sell its business in China and remains fully committed,” the company said in an emailed statement. “We’re

 

(Bloomberg) — Xi Jinping’s ascension to power in China five years ago raised hopes that the son of a reformist revolutionary would open the country wider to the West.
Half a decade later and the opposite has happened: China is in the throes of the biggest crackdown on freedom of expression and media in the internet era. Foreign companies complain of restrictions that hamstring operations and favor homegrown players. Police are shutting businesses and arresting civilians on message groups as Beijing plugs more holes in its “Great Firewall” blockade of blacklisted sites.
Xi, who’s expected to cement his leadership of the Communist Party at the congress that started Wednesday, has galvanized a nationwide machine in which corporations, cybercops and automated systems police content to preserve the party’s seven-decade rule. As global giants from Alphabet Inc.’s Google to Facebook Inc. explore entry, they have to weigh the benefits of tapping the world’s biggest internet market against the fallout from appearing to back a repressive regime.
If China’s supreme leader succeeds in shoring up his already extensive influence with another five-year term, web access won’t get any easier for internet players both local and foreign, not to mention the world’s largest populace.
Local Giants
“China has become far bolder and more strategic in its approach to a very old and familiar objective, which is to shore up political control through controls on

 

(Bloomberg) — Xi Jinping’s ascension to power in China five years ago raised hopes that the son of a reformist revolutionary would open the country wider to the West.
Half a decade later and the opposite has happened: China is in the throes of the biggest crackdown on freedom of expression and media in the internet era. Foreign companies complain of restrictions that hamstring operations and favor homegrown players. Police are shutting businesses and arresting civilians on message groups as Beijing plugs more holes in its “Great Firewall” blockade of blacklisted sites.
Xi, who’s expected to cement his leadership of the Communist Party at the congress that started Wednesday, has galvanized a nationwide machine in which corporations, cybercops and automated systems police content to preserve the party’s seven-decade rule. As global giants from Alphabet Inc.’s Google to Facebook Inc. explore entry, they have to weigh the benefits of tapping the world’s biggest internet market against the fallout from appearing to back a repressive regime.
If China’s supreme leader succeeds in shoring up his already extensive influence with another five-year term, web access won’t get any easier for internet players both local and foreign, not to mention the world’s largest populace.
Local Giants
“China has become far bolder and more strategic in its approach to a very old and familiar objective, which is to shore up political control through controls on

 

(Bloomberg) — China’s online watchdog has launched an investigation into reports of multiple violations at news services run by Tencent Holdings Ltd., Baidu Inc. and Weibo Corp., as the government continues to tighten scrutiny over internet content.
The Cyberspace Administration of China said Friday it’s instructed its Beijing and Guangdong branches to look into reports that some of the country’s largest online services are carrying user-generated content laden with “violence, porn, rumors” disruptive to social order. It didn’t specify what actions may be taken. Tencent, Baidu and Weibo said in separate statements they will cooperate with the government on removing questionable content and rectifying any issues.
China has applied increasing pressure over internet media in the run-up to an important Communist Party congress later this year that is expected to consolidate President Xi Jinping’s authority. Intent on muzzling potential sources of disruptive information, the government has shut livestreaming services and websites, tightened regulations governing internet access, and issued repeated warnings about the need to clean up content through various agencies. Observers say the enhanced scrutiny is also characteristic of Xi’s administration.
The latest probe centers on three of the country’s largest repositories of online musings, all with hundreds of millions of users: Tencent’s WeChat messaging service, Weibo’s Twitter-like blog and Baidu’s

 

(Bloomberg) — China’s Communist Party is curbing the online activities of its 89 million members ahead of a leadership shake-up in a few months.
The new rules made public on Tuesday said that all party cadres face punishment if they visit “illegal websites” or disclose party and state secrets online. Cadres need permission from the party before registering social media accounts or setting up a WeChat group that contains their job information, the party’s personnel, propaganda and cyber watchdog said.
Apple Removes VPN Apps in China Not Compliant With Local Rules
Party’s members could also face punishment for passing information online that damages the image of the party and the leadership, the rules said. Violators could be punished with party regulations and the nation’s laws, they said.
The new rules come amid a surge in restrictions on free expression ahead of the 19th Party Congress, a meeting of top leaders that will mark the halfway point for President Xi Jinping’s presumed term in office. The president has recently warned military and government officials to stay loyal as he asserts his power ahead of the meeting a few months from now.
China already blocks access to Twitter, Facebook and news websites such as the New York Times. Facebook Inc.’s WhatsApp messaging service was partially blocked in China in July, and the government has begun cracking down on virtual private networks — a technology that allows users to route their data

 

(Bloomberg) — Apple Inc. has removed some virtual private network applications from its stores in China, a move that could block users ability to bypass a local web firewall and access overseas sites.
New Chinese Internet Clampdown Hurts Business, U.S. Group Says
“We have been required to remove some VPN apps in China that do not meet the new regulations,” Carolyn Wu, Apple’s China spokeswoman told Bloomberg in an emailed response, referring to rules issued by the Ministry of Industry and Information Technology earlier this year that asks all developers offering VPNs to obtain a government license.
VPNs are popular in China as they help users get around the Great Firewall, a system used by China to control Internet access. The removal is the latest sign of China’s tightening measures to block individuals’ access to virtual private networks, following shutdowns of several popular VPN services. Policy makers have prioritized stability ahead of a twice-a-decade leadership reshuffle due in the fall.
China Is Said to Close Major Hole in its Great Internet Firewall
Wu said the VPN apps remain available in all other markets where Apple does business.
China’s MIIT didn’t immediately respond to a Bloomberg’s fax seeking comment on the issue out of business hours.

 

(Bloomberg) — China’s clampdown on the use of virtual private networks to circumvent the country’s internet controls risks disrupting businesses that depend on them for cloud services and data security.
Besides using virtual private networks to gain access to websites like Facebook and Google blocked by China’s regulators, companies use VPNs to ensure speed and efficiency as they migrate more services to the cloud, and to ensure that data moving across those networks is secure, said Jake Parker, vice president of the U.S.-China Business Council.
China is said to have told telecommunications carriers to block individuals’ access to VPNs — services that skirt censorship restrictions by routing web traffic abroad — by Feb. 1. The apparent acceleration of a crackdown comes as Beijing prepares to host the 19th Communist Party Congress, a sensitive time during which leadership reshuffles are expected and the government tightens its grip over media.
Some businesses worry that the crackdown, which for now is said to target mainly individual users, could expand and end up hurting their operations. More than a fifth of foreign businesses responding to a European Chamber of Commerce survey conducted this year complained that existing internet restrictions affected more than a 10th of their in-country revenue.
“Any kind of restriction on VPNs operating in the China market would be a disruptive influence on businesses operating here,” Parker said in a

 

(Bloomberg) — China’s government has told telecommunications carriers to block individuals’ access to virtual private networks by Feb. 1, people familiar with the matter said, thereby shutting a major window to the global internet.
Beijing has ordered state-run telecommunications firms, which include China Mobile, China Unicom and China Telecom, to bar people from using VPNs, services that skirt censorship restrictions by routing web traffic abroad, the people said, asking not to be identified talking about private government directives.
The clampdown will shutter one of the main ways in which people both local and foreign still manage to access the global, unfiltered web on a daily basis. China has one of the world’s most restrictive internet regimes, tightly policed by a coterie of government regulators intent on suppressing dissent to preserve social stability. In keeping with President Xi Jinping’s “cyber sovereignty” campaign, the government now appears to be cracking down on loopholes around the Great Firewall, a system that blocks information sources from Twitter and Facebook to news websites such as the New York Times and others.
While VPNs are widely used by businesses and individuals to view banned websites, the technology operates in a legal gray area. The Ministry of Industry and Information Technology pledged in January to step up enforcement against unauthorized VPNs, and warned corporations to confine such services to internal use. At least

 

Thank you to everyone who attended ResellerClub Presents HostingCon China 2015 in Shenzhen, China this past May! Over 400 industry influencers attended the event to Network, Learn and Grow.

Enjoy the pictures below and we hope to see everyone at ResellerClub Presents HostingCon China 2016 in Shenzhen on May 28, 2016!

For all the latest HostingCon news and information, visit HostingCon – Premier Industry Conference and Trade Show for Web Hosting and Cloud Service Providers

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China’s Ministry of Public Security announced the arrests of 15,000 alleged cybercriminals this week. It was the first major cybersecurity announcement from China following the July launch of a six-month law enforcement program called “Cleaning the Internet.”

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