Amazon's plans to launch cloud services in China has been suspended, delaying the launch of its Kindle e-reader in the country.
According to Sohu Tech news site on Wednesday, citing an unnamed source, Amazon had started negotiating in 2010 to set up its cloud service in the country and concluded the difficult process a year later. However, the company decided to suspend preparation work.
This follows a reports earlier this month that the U.S. e-commerce giant had the Chinese government's approval to sell Kindle devices in China and is believed to have had plans to bring devices to the country earlier this month.
Since the Kindle is reliant on the service launch, providing services and opportunities for Amazon to draw revenue from device owners, Kindle's release in China will be affected and delayed, the report on the Chinese news site noted.
Amazon is also adjusting its methods of offering cloud services in China, since foreign companies who wish to operate cloud services in the country must have government license, a local data center and a special unit, the report added.
Within Asia, Amazon has already made a push into Japan last month, launching a Japanese-version of its new Paperwhite e-reader, a Japanese Kindle store and smartphone app to enter the country's e-book market.
The Kindle's entrance into China will face competition from Chinese e-commerce player Dangdang who launched its e-reader in July at a retail price of 599 yuan (US$79). In comparison, the cheapest Kindle Paperwhite e-reader, which includes "Special Offers", retails at US$119 in the United States.