AWS already had to effectively do this. AWS only exists in two regions in China because they licensed much of the AWS software to be run by a pair of Chinese-government affiliated ISPs inside China (that is, Amazon doesn’t run AWS in either of its China zones — it’s run by a pair of Chinese companies who license AWS’s software).

This is why the China AWS regions are often quite far behind in terms of functionality from every other region (they either haven’t licensed all the functionality, they don’t keep up-to-date at the same cadence as Amazon, or Amazon is holding certain functions back), and why you can’t really access them from the standard AWS console.

So in effect, Amazon did have to give their software to Chinese-government affiliated companies in order to continue operating in China.