News Analysis
American and foreign investors in China are experiencing increased risks and lower returns.
A candle burning at both ends, the cost of operating in China is increasing, as is the risk. At the same time, a general downturn in the Chinese economy is decreasing investment and preventing consumers from spending money. Harsh economic times are altering the spending habits of Chinese consumers. They are purchasing less. When they spend, they increasingly choose domestic brands and demand lower prices.
This combination of economic and social factors is driving down the market share of foreign companies. Consequently, international brands face higher costs, greater risk, and lower sales revenue….