Foreign Companies Pulling Out of China

SOURCE www.breitbart.com
Foreign companies are pulling out of China due to lack of confidence in the Communist regime's ability to stabilize the economy. Law firms and real-estate developers are leading the exodus. China's Ministry of Commerce has rolled out a plan to address the loss of direct foreign investment.

Key Points

  • U.S. law firm Cleary Gottlieb Steen & Hamilton closing its office in Beijing
  • BlackRock fund forfeiting office towers in Shanghai
  • Foreign companies making up 20% of office space in Beijing
  • China's Ministry of Commerce rolling out a plan to address the loss of foreign investment

Pros

  • Foreign companies may find better opportunities in other markets
  • Could lead to more competition within China

Cons

  • Loss of foreign investment in China's economy
  • Impact on local employees and businesses