US-China chip war nixes Alibaba’s plan to spin out cloud business

News Snapshot:

London CNN — Alibaba has called off plans to spin off its cloud computing arm, saying recent tightening of US controls on chip exports to China has created “uncertainties” for the division’s prospects. The announcement came only hours after crucial talks between Chinese President Xi Jinping and US President Joe Biden appeared to put the often rocky relationship between the world’s top two economies on a steadier footing. In a statement Thursday, Alibaba (BABA) said the new US restrictions “may materially and adversely” affect the ability of Cloud Intelligence Group to operate, impacting on profitability and casting doubt over the...