Foreign firms reconsider China strategies amid slowing growth and rising risks
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Foreign companies are divesting from China due to slower economic growth, tighter regulations, and geopolitical tensions, but the large market size makes exiting difficult.
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China's growth is slowing after decades of rapid expansion, leading investors to rethink long-term plans, even as Beijing pushes to retain foreign investment.
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Rising costs, unfair playing field concerns, and ambiguous laws around data sharing and state secrets are prompting strategic reshoring and nearshoring.
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The consumer market and industrial ecosystem still provide opportunities in sectors like healthcare, EVs, and high-end manufacturing for those willing to navigate the challenges.
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Companies are recalibrating China strategies, with smaller firms finding it especially difficult to adapt, but the market's size means multinationals still see it as indispensable.