Amazon.com Inc. is preparing to close a Chinese online store that serves consumers in mainland China, according to people familiar with the subject.
What is still on?
Other Amazon operations in China, such as Amazon Web Services, Kindle e-books and cross-border equipment that help send merchandise from Chinese merchants to overseas customers, will continue to operate, said the people, who asked not to be identified because the matter is private.
The withdrawal of Chinese e-commerce represents a major setback for the company and the CEO, Jeff Bezos, known for his willingness to cover losses to achieve long-term gains.
Amazon has struggled to win customers from Alibaba Group Holding Ltd. and JD.com Inc., even after investing in warehouses, data centers and the acquisition of Joyo online book seller in 2004. The pullback is the latest sign that Amazon is ceding to China to be able to focus on India, where it has more chances of becoming a dominant operator.
Amazon did not respond immediately to requests for comments.
Also published on Medium.