Amazon is shutting down its Shanghai artificial intelligence lab, the Financial Times reported on Wednesday.

Reuters could not immediately confirm the report. Amazon did not immediately respond to a request for comment outside regular business hours.

Amazon’s decision to shut the lab comes amidst rising tensions between Washington and Beijing, with the U.S. increasing its scrutiny of American companies operating in China.

Wang Minjie, a scientist in the Shanghai lab, said his team was “being dissolved due to strategic adjustments amid US-China tensions,” the newspaper said, citing a post on WeChat.

Amazon Web Services (AWS) set up its Shanghai Lab in 2018. While the headcount at the AWS Shanghai research lab is unclear, the FT report said, AWS at its peak had more than 1,000 staff in China.

The report comes as the tech giant slashes jobs globally, joining a growing list of firms, including Microsoft and Meta, who have announced layoffs this year as they increase their reliance on artificial intelligence.