Amazon is closing the doors on its Shanghai artificial intelligence research lab, a move that signals the company’s shifting priorities in China.
The lab, which first began operating in 2018 under Amazon Web Services, centered its work on artificial intelligence research lab. Now, the team has been disbanded.
Wang Minjie, an applied scientist from the lab, shared on WeChat that the decision was fueled by “strategic adjustments amid US-China tensions.” It marks another chapter in the wave of restructuring tech giants have chased recently.
Tensions between the US and China have only intensified as technology and trade disputes continue. Companies like Amazon face a complex environment with Washington’s restrictions on Chinese access to semiconductors and high-tech gear, while Beijing pushes for local independence in technology.
An Amazon spokesperson, Brad Glasser, noted, “We made the difficult business decision to eliminate some roles across particular teams” within the AWS division. The company had only just announced layoffs across several US-based cloud teams, impacting marketing, training, and certification groups as well.
Retreat from the Region Builds Momentum
Amazon’s shifting strategy in China is hardly new. In 2019, it closed its China online retail marketplace, followed by the end of its Kindle e-book service in China in 2022.
The broader landscape reveals many American firms are rethinking their footprint in China. Recent US trade policies, particularly tariffs and limits on chip sales, have put unprecedented pressure on these businesses.
Companies such as Nvidia and Advanced Micro Devices found themselves unable to supply their products freely to Chinese clients, further deepening the divide. While some rules have eased, the environment remains one of uncertainty and caution.
As both governments look inward and tech competition heats up, decisions like Amazon’s reveal just how global business is shaped by tech giants as much as profit.
