Alibaba Scraps Cloud Unit Spinoff, Citing U.S. Chip Curbs

SINGAPORE—Washington’s latest curbs on the export of high-performance chips to China are beginning to bite.

Alibaba on Thursday said it had scrapped its plan to spin off and list its cloud-computing division, citing the impact of the export controls that took effect late last month. The restrictions “may materially and adversely affect” the cloud business’s ability to offer products and services and to perform under existing contracts, Alibaba said, adding that it would focus on the division’s growth.