Amazon is used to building out localized infrastructure AFTER demand has been proven. In China, local competition already exists and that's why they are getting their asses handed to them. It also seems like Amazon.cn isn't given the leeway they should have been given for local execs to make those kinds of calls. They (Amazon) do a lot right, but that doesn't mean their approach is always right.

It’s been logical to do it in a domestic market to become a market leader but it’s illogical to do it in a new market?

I think there's something to the OP's point.

Amazon's infrastructure roll out paid off in the United States because there was little competition. They rushed out infrastructure and cornered the online shopping and delivery market. Walmart and the other big stores had an entirely different business model and their warehouses and infrastructure took time to adjust and catch up, with Amazon still in the lead.

In China, the local competitors already have a significant head start on their infrastructure, and Amazon would be playing catch up in a relatively unfriendly market. It could take them forever to recoup the investment, if they ever did.

Unfortunately, they can't compete without that infrastructure in place, so what else can they do but leave?

Yeah - and Jeff seems to be the type of guy who is like, you are right CFO. We are here for the short term - let us do what you are saying?!

China is the biggest eComm market in the world! If there was an opportunity for Amazon to penetrate (regulations being the biggest challenge), Amazon would have totally gone for it.

This is a company why, 5 yrs back, committed $5B to India when eComm there was/still is totally burgeoning.

5 yrs ago was 7 yrs after Flipkart cloned Amazon in India by former Amazon employees.

And 5yrs ago was 2yrs after Amazon launched in India. Anyways, Amazon is dominating eComm in India and it seems like the early lead which Flipkart had didn't count for much.

This was already standard in China at least 7 years ago.