July 12, 2023

Huawei restricted in US, Amazon changes its strategy in China

Huawei restricted in US, Amazon changes its strategy in China

The United States places Huawei on Export Control Entity List

U.S. President Trump signed an executive order declaring a state of emergency on May 15 local time, allowing United States to prohibit companies owned or controlled by "foreign adversaries" from providing telecommunications equipment and services.

On May 16, US Department of Commerce announced that it would place China's Huawei and its 70 subsidiaries on "Entity List" for export control, prohibiting Huawei from buying technology or accessories from US companies.

Huawei restricted in US, Amazon changes its strategy in China

These actions by United States are aimed at cutting off Huawei's life path, holding back China's high-tech development, and maintaining United States' global technological dominance. The United States uses concept of "national security" as a tool to promote protectionism. It is clear that this is a confrontation against my country through various means such as "political kidnapping", "closing doors and blockades", lobbying and threatening allies based on "unfounded" accusations.

Amazon exits China early

In fact, "entity list" of US business is an important part of US trade dispute with China this time around. On April 18, 2019, Amazon confirmed that it will stop providing seller services to third-party sellers on Amazon China website effective July 18, 2019.

Many commentators believe that Amazon China's 15 years of defiance in China is what caused end of Amazon China today. Attempts to copy global practices and models in China will not succeed. But author believes that Amazon's departure is not just a one-sided readiness to adapt to climate, and should have a subtle connection with current US attitude towards China.

Huawei restricted in US, Amazon changes its strategy in China

Beware of Amazon's cloud business in China

In 2018, market share of Chinese e-commerce platform Amazon was only 0.6%, but this did not affect maximum revenue of Amazon. Amazon China's other businesses, especially AWS, have developed quite well since entering Chinese market, and there has been more and more good news in recent days.

  • On March 28, Sinnet, one of China's AWS operators, received a CDN license.
  • April 2, GDS launched AWS Direct Connect Access Point services at its data centers in Shanghai and Shenzhen.
  • April 18, five days after Amazon China announced it was withdrawing from Chinese e-commerce market, AWS launched three new Amazon CloudFront sites in China.
  • In today's global cloud services market, AWS is absolute leader. In 2018, AWS posted a net profit of 7.296 billion yuan, accounting for 72.4% of Amazon's annual profit. Although market share of Alibaba Cloud and Tencent Cloud is higher than that of AWS, AWS is most developed "international cloud" in Chinese market. At current stage of tension between China and US, no one can guarantee that Amazon AWS business will not cause a data breach in China.

    Having learned from US government, Amazon violates rights of Chinese companies

    As part of U.S. government's unfair treatment of China, Amazon also spares no effort in intimidating Chinese companies.

    In October 2015, Chinese company Yianfang registered Deep Lens trademark for CCTV camera equipment. At end of November 2017, Amazon released its DeepLens AI camera. Amazon has always used DeepLens trademark in its promotion in China, but said that China does not protect intellectual property rights and Yi Anfan wants to use Amazon's reputation for its promotion.

    Huawei restricted in US, Amazon changes its strategy in China
Huawei restricted in US, Amazon changes its strategy in China

    Please, Bezos, stay vigilant and see who registers and uses it first. If Amazon only sells your camcorders in US, we might consider that a coincidence, but after entering China and then being bitten, you're wrong. Like Trump administration, it wants to dominate world but blames China for development. Where is justice?