《经济学人》1月25号报导说，一些外国公司正在离开中国。美国化妆品公司“露华浓（Revlon）”去年12月说，它正在完全撤离中国。而世界上最大的化妆品公司法国巴黎的“欧莱雅（L’Oreal）”，很快跟进表示，将停止在中国销售它的一个主要品牌“卡尼尔”。另外，美国电子零售商“百思买（Best Buy）”和德国的竞争者“万得城（Media Markt）”，都已经离开中国。互联网巨头“雅虎”也已经离开。
China Gold Rush Fading: Foreign Companies Leaving.
UK’s The Economist magazine has reported that during the past three decades, many multinational companies coveted China, following the global financial crisis.
It now seems the gold rush is over.
This is suggested to because China’s economic growth has become weak and tired with rising production costs.In addition, there have been further restrictions
on market accessibility for foreign companies.
On January 25, The Economist reported that some foreign companies are now leaving China. Last December, U.S. cosmetics company Revlon said that they were completely evacuating China.L’Oreal, one of the world’s largest cosmetics
company from Paris, soon followed this trend, halting sales of its major brand Garnier.
U.S. electronics retailer Best Buy and it’s German competitor Media Markt have left China, as has internet giant Yahoo.
Duan Shaoyi, Assistant Director, Beijing Unirule Institute of Economics: “The fading investment boom doesn’t mean it is completely gone.The transition from a shortage economy to a surplus economy in China made foreign investment lack sufficient competition. Additionally, China does not need so much foreign investment now. In fact, capital is independent, and it is a mutual two-way choice between the capital and the market."
The Economist reported that there is increasing competition for foreign companies. China is already one of the world’s most intensive battlegrounds for global brands. Even local businesses with long term low quality brands have joined the fight. Many companies now have overseas experience and have developed some innovative products. Chinese consumers are no longer simply paying high prices just because a brand is foreign.Their mastery of the internet, and lack of brand loyalty, makes them one of the world’s most fussy customers.
Duan Shaoyi: “Previously, it was a transition from a planned economy to a market based economy. This was associated with a severe shortage of various commodities.Now, a lot of products are in excess, with many years of economic development.Investment may get high return in a shorter time.With longer time periods, more profit requires more innovation and greater consumer advantages."
However, there have been a varied number of reasons for foreign companies leaving China.Duan Shaoyi gave the example that Yahoo quitting was because of pressure from the Chinese regime.Best Buy has left because its cannot compete
against emerging domestic enterprises.
The report said that the Chinese regime has always given some foreign companies a hard time.It restricts market accessibility for foreign banks and brokerage firms. It also blocks internet companies, including Facebook and Twitter.
Information suggests that the Chinese regimes harsh treatment of foreign companies is spreading. For example, Cisco, IBM and QCOM are facing a backlash after the Edward Snowden incident.Pharmaceutical firm GlaxoSmithKline is now under investigation for corruption in China.Apple faced embarrassment after it was forced to make an apology because of insufficient guarantees last year.
Starbucks is under accusation of price cheating by the official state-media.
In addition, the campaign to crackdown on corruption has also impacted foreign luxury goods companies.
Duan Shaoyi: “Chinese officials don’t understand the economy.
This is because they want to use a non-market solution to intervene on prices.
Local Chinese officials have more interventions in local enterprises
So, it just means their super-national treatment is reduced not deteriorated."
Some remaining foreign companies are struggling in China.IBM has said that its last quarter profit fell by 23% in China.French Remy Cointreau reported it ‘s sales of Remy Martin Cognac fell by more than 30% during the first three quarters of last year.
Also, the sales of U.S. Yum in China fell 16% last September.
This is thought to be partly because the regime suspected illegal use of antibiotics. It subsequently investigated its chicken suppliers.
Investors are no longer warmly embraced in China.
The Economist constructed a China reliability index (Sinodependency Index).
This is based according to the world’s dependence on China’s economy, to measure U.S. multinationals ‘ revenue.It showed that those companies relying on China had their stock lag behind their peers during the past two years.
The report also said that China is still a bonanza for those companies that can increase productivity, improve management, and respond to local tastes.
However, China’s ‘Golden Age’ has ended.
Interview & Edit/QinXue Post-Production/Wang Mingyu