Facebook, Twitter and Big Tech Make Their Money in China, by Daniel Greenfield

Facebook, Twitter, and Amazon don’t make much money selling into China, but they make a lot of money by facilitating Chinese sales in the US. From Daniel Greenfield at danielgreenfield.org:

Last year, Amazon was forced to shut down its marketplace business in the People’s Republic of China. Amazon’s defeat followed that of a long line of Big Tech players who had tried to make a go of it in China and failed miserably. China’s economy is built to boost domestic businesses and foreign exports, with some needed imports, by companies linked to the Communist Party.

And no matter how politically correct Amazon may try to be, it can never join that club.

But Amazon’s business in China isn’t done. To a large degree, Amazon’s business is China. Behind the smiling logo, the massive array of businesses covering everything from running the CIA’s cloud to spending $500 million to make a Lord of the Rings streaming series, are a bunch of grim offices, apartments, and warehouses in Chinese cities that make up its real business.

Three years ago, third-party sellers topped Amazon’s own sales. They now make up 58%. Who are they? If, like most Americans, you shop at the giant dot com retail monopoly, you’ve already waded through a stream of random shop names, fake misspelled reviews, and counterfeit products while searching for just about anything. What happened? China happened.

Between 40% to 48% of top third-party sellers on Amazon are operating out of China. The massive growth in Chinese third-party sellers has been fairly recent and transformative.

What Amazon Prime members are really buying is membership in a club that helps third-party sellers from China push counterfeit and imitation products to Americans. Amazon acts as a middle man, charging Chinese sellers and American customers for handling listing, shipping and sales..

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