Amazon not Concerned over China – Aggressively Expands Reach

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By Jacob Maslow

One company not concerned about the future of the Chinese economy is Amazon (NASDAQ: AMZN).

The internet retailer has been and continues to aggressively expand its logistics reach within China, in an effort to cut the cost of shipping billions of packages to the world’s second largest economy.

So just why is Amazon expanding so aggressively in China?

Analysts are speculating that this is yet another move by the internet retailer to move into the shipping and delivery business, competing with current partners like FedEx (NYSE: FEDX). This is a claim which Amazon CEO Jeff Bezos denied when asked about it at the last post-earnings press conference.

A spokesperson for Amazon declined to comment when Reuters asked about the matter.

Amazon has come under increasing pressure in recent times to drive down shipping costs, which analysts claim rose 37% last year.

So is Amazon embarking on a grand plan to enter the global shipping and logistics business for themselves? Are they going to cut out current partners in the future, or are they simply diversifying and providing a new source of revenue and expanded options to their customers?

We’ll have to wait and see. For now, it looks increasingly likely that Amazon is pushing for their own delivery service, and China is a very smart move if so.

While other investors may be anxiety stricken over the future of China, Amazon is going all in.

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