What's Going on With Amazon Web Services in China?

What's Going on With Amazon Web Services in China?

In the United States, Amazon.com (NASDAQ: AMZN) dominates its respective industries. The company enjoys an enviable lead in e-commerce, boasting 44% of U.S. e-commerce spending in 2017. In the cloud-computing space, Amazon Web Services (AWS) is nearly as dominant on a global scale with an estimated 35% of infrastructure-as-a-service and provider-as-a-service related cloud spend.

In the second-largest economy, China, Amazon has had mixed success. Amazon's e-commerce presence has been essentially non-existent in the country. The Wall Street Journal estimated Amazon's online retail market share at 1.3%, down from 2.1% in 2011 as Chinese rivals Alibaba (NYSE: BABA) and JD.com have proven to be formidable rivals. The company's higher-margin Amazon Web Services (AWS), has been more successful, but recent governmental action gives cause for concern.

Chinese demand for cloud computing is expected to grow from $2 billion to $16 billion by 2020. Image source: Getty Images.

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Source: Fool.com