On Tuesday, Amazon unveiled it will be expanding its cloud computing business in China, in a bid to win shares in the “highly regulated” market.

Amazon Web Services (AWS) will begin offering customer services in partnership with a Chinese company called Ningxia Western Cloud Data Technology (NWCD).

Amazon said in a statement: “AWS has formed a strategic technology collaboration with NWCD, and NWCD operates and provides services from the AWS China Ningxia Region, in full compliance with Chinese regulations.”

The move came a month after AWS said it would sell hardware assets of its Beijing-registered cloud unit for up to US$302.06million.

According to Synergy Research Group, Chinese firms account for roughly 80% of total cloud services revenue in China.

Written by Leah Alger