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Amazon’s Big Battle in China
Article

Amazon’s Big Battle in China

Zhang Jun and Song Wei
Caijing Magazine, 2016
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Editorial Rating

7

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  • Comprehensive
  • Overview
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Recommendation

Amazon’s cloud computing services have become the company’s cash cow. And, of course, the Internet giant doesn’t want to pass up the lucrative cloud computing market in China. But as every foreign Internet company that has set foot in China can attest, entering the Chinese market is no easy feat. For years, negotiations stalled; and when Amazon finally had a deal, new government policies soon crippled it. In this article from Caijing magazine, reporters Zhang Jun and Song Wei detail Amazon’s bumpy journey in China. They also take a stance by warning against using old ways of governance to regulate new industries. To prevent the shrinking of foreign investment, they urge the government to issue clear regulations and implementation processes. getAbstract recommends their analysis to corporate executives with eyes on the Chinese market and anyone curious about why foreign Internet companies struggle in China.

Take-Aways

  • Amazon’s work on bringing its cloud computing services to China began in 2012, but the company became enmeshed in tedious and inefficient negotiations with China's government and businesses. 
  • Amazon built its data center in Zhongwei, a remote desert city, because of the city’s business-friendly policies, low electricity costs and cool climate.
  • China’s government was hoping that Amazon would encourage other players in the cloud computing industry to improve.

About the Authors

Zhang Jun and Song Wei are reporters for Caijing, an independent magazine that covers societal, political and economic issues.

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