US Chip Ban Fallout Spreads as Alibaba Scraps Cloud Spinoff
- Tencent also sees impact on cloud operations from US AI curbs
- Washington’s new rules affecting China’s private enterprise
The Alibaba Cloud booth at the Hong Kong FinTech Week in Hong Kong, China.
Photographer: Paul Yeung/BloombergThis article is for subscribers only.
Alibaba Group Holding Ltd. scrapped plans to fully spin off its cloud computing unit, citing the impact from US policies restricting China’s access to advanced semiconductors.
The Chinese e-commerce leader joins Tencent Holdings Ltd. in acknowledging difficulties brought about by the US curbs announced last month. The Biden administration’s efforts to prevent the Chinese government from obtaining cutting-edge chips for military applications are now affecting the country’s private sector in unexpected ways.