Amazon.com Inc is selling off the hardware from its public cloud business in China, amid tightening regulation over online data that is creating a hurdle for technology firms operating in the world’s second-largest economy, Reuters reports. Beijing Sinnet Technology, Amazon’s China partner, said in a filing late on Monday that it would buy the US firm’s Amazon Web Services (AWS) public cloud computing unit in China for up to 2 billion yuan ($301.2 million). “In order to comply with Chinese law, AWS sold certain physical infrastructure assets to Sinnet,” an AWS spokesman said on Tuesday, adding AWS would still own the intellectual property for its services worldwide. Chinese regulators are tightening rules on foreign data and cloud services, implementing new surveillance measures and increasing scrutiny of cross-border data transfers. Laws that came into effect in June require firms to store data locally. The move, which was for regulatory compliance, will also help AWS build up other business in the market.