Companies from IBM to Starbucks are struggling with new obstacles in China as Communist Party officials tussle over the direction and depth of economic reforms.
China's state-controlled media last week accused Starbucks Corp. with charging too much for coffee and said Samsung Electronics Co.'s smartphones don't work properly. IBM's China revenue slipped 22 percent in the third quarter, contributing to the first-ever sales decline in the company's growth-markets division, as state-owned companies started delaying orders, including mainframes and servers.
"The operating environment for foreign firms has deteriorated in the last year in a serious way," said Shaun Rein, managing director of China Market Research Group in Shanghai. "In my 16 years in China, it's some of the worst business sentiment among foreign executives. They don't feel as welcome as they used to."
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
