The trade wars between the U.S. and China are intensifying. After the curbs over chips and chip equipment, the United States is now contemplating restricting the access of Chinese companies to the cloud services of tech giants like Microsoft (MSFT) and Amazon (AMZN), according to a Wall Street Journal report.
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The report stated that the U.S. Government is considering the requirement of government permissions before U.S. tech companies provide these cloud services to Chinese companies.
This news comes even as China has restricted exports of metals including gallium and germanium which are widely used in semiconductors and electric vehicles.
Amazon is increasingly focusing on expanding its Amazon Web Services (AWS) even as its cloud services growth is slowing down. Last month, the company announced an investment of $7.8 billion in upgrading the current AWS data center in Ohio.
Analysts are bullish about AMZN stock with a Strong Buy consensus rating based on 37 Buys and one Hold.