51–60 of 65 posts
Reports that #AWS is exiting its China business are completely wrong. Sinnet transaction is to meet Chinese regulatory requirements. #AWS remains committed to provide its service in China. - Werner Vogels
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The sketchy actions are usually a 2-step formula: 1) force foreign companies to "partner" with local Chinese companies. This leads to the joint ventures using backdoors and surveillance against the users 2) Once the partnership is mature enough, the local partners can steal the technology and know-how of the foreigners, and then start competing with them. And because they are local Chinese companies, Chinese customer…
> Take for instance Baidu's "self-driving platform", Apollo. Volvo is going to adopt that in its self-driving cars I couldn't find any reference to that on the web?
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> China will likely start opening up more because Western companies aren't as naive anymore and short term profits for long term losses aren't much of an option anymore now that Chinese companies are well developed in all the tech and economies of scale. Or: China will build local champions who can grow inside a protected region and then, once they have their playbook down and anfat balance sheet, they can go out and…
Without having to deal with international competition, it’s doubtful the local champions can do much outside of the mainland. It’s like how wechat is the biggest thing inside china, but also missing everywhere abroad outside of the Chinese tourist sector.
Yet another company driven out of China by government-industry collusion.
"No, AWS did not sell its business in China and remains fully committed to ensuring Chinese customers continue to receive AWS’s industry leading cloud services. Chinese law forbids non-Chinese companies from owning or operating certain technology for the provision of cloud services. As a result, in order to comply with Chinese law, AWS sold certain physical infrastructure assets to Sinnet, its longtime Chinese partne…
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In contrast, look at what these countries do rather than what their leaders say. American markets are actually open. Americans can invest their money anywhere. Foreigners can buy property and own companies with few restrictions. China discourages imports by punitively taxing them. Chinese face strict capital controls. Foreigners and their businesses are heavily restricted in what they can buy and what activities they…
Really in that case when I see prospectuses for floats in the UK they explicitly ban Americans (due to silly IRS rules I belive) The float of the royal mail is one example retail investors in the USA where locked out
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Number 1 is especially key, last 2 years US businesses have pulled out of China a lot because of really really sketch actions by the Chinese government. Doesn't hurt to use the totalitarian argument either, but mainly they are losing money. Goldman Sachs, Citigroup sold their stakes last year as well. China will likely start opening up more because Western companies aren't as naive anymore and short term profits for…
I mean, the game they play is really hard to fight against. It usually goes something like this: * Attract western businesses to make investments based on various capital incentives. You are a free market, after all. * Once they are established and comfortable, start imposing restrictions, stealing IP and undercutting foreign companies. Make life increasingly difficult, except for those companies which you really nee…
1 billion people to buy your stuff is pretty tempting!!! If you are a CEO with 10 million shares of stock in BigCo.. and profits are going up like 1% a year.. why not roll the dice with China? If it works for a year, you make a bunch of money and cash out. If not, you don't "lose" anything.
Two things I take away from this. 1. Amazon decided that the risk of doing business in China (handing over information & know-how to the government, helping it suppress the human rights of its citizens, etc) was not worth the revenue that it would make. 2. It sold for $300 million. That means its run-rate was probably only $50 million a year or so annually (or maybe less). That's not very much at all, given that AWS'…
This sort of sale/partnership occurs all the time with automakers since they're either not allowed to do business or subject to insane taxes and tariffs if they aren't majority Chinese.
For instance, Volkswagen in China is 50% owned by Shanghai Automotive Industry Corporation - a Chinese company.
I don't see any reason to run around and proclaim doom and gloom and the end of AWS as we know it or anything.
Does this deal include datacenter/HW designs? Software? Operational practices? Seems like a pretty massive technology transfer.
Looks like they "bought" it but AMZN will license the technology to them so they'll still make some money. Apparently China doesn't want big tech to be non-Chinese in their country and doesn't seem to be hurting. They have their equivalent of everything
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> China will likely start opening up more ... Let's not forget that there is an international trend to close down more (to use the same metaphor), including the U.S. and U.K. China could follow that trend too, and certainly the progress of free trade no longer can be assumed. The President of the U.S. just gave an unprecedented speech at the Asian summit, criticizing institutions of rules-based, cooperative internati…
In contrast, look at what these countries do rather than what their leaders say. American markets are actually open. Americans can invest their money anywhere. Foreigners can buy property and own companies with few restrictions. China discourages imports by punitively taxing them. Chinese face strict capital controls. Foreigners and their businesses are heavily restricted in what they can buy and what activities they…
Trump just took office in January; it will take awhile to redirect the massive ship of state. So far he's pulled out of TPP, may pull out of NAFTA, may pull out of the S. Korea trade deal ...