Alibaba Scraps Cloud Unit Spinoff, Citing Washington’s Chip Curbs

SINGAPORE—Washington’s newest curbs on the export of high-performance chips to China are starting to chew.

Alibaba on Thursday mentioned it had scrapped its plan to spin off and checklist its cloud-computing division, citing the influence of the export controls that took impact late final month. The restrictions “might materially and adversely have an effect on” the cloud enterprise’s capacity to supply services and products and to carry out underneath current contracts, Alibaba mentioned, including that it might deal with the division’s development.