Foreign companies are shifting investment out of China as confidence wanes, business group says

Two-thirds of the 570 companies that responded to the European Chamber’s survey said doing business in China has become more difficult, up from less than half before the pandemic. Three out of five said the business environment is “more political,” up from half the previous year.

Last month, the government banned using products from the biggest U.S. maker of memory chips, Micron Technology Inc., in computers that handle sensitive information. It said Micron had unspecified security flaws but gave no explanation. The European Chamber noted it wasn’t just foreign companies that are moving: 2 out of 5 in its survey reported Chinese customers or suppliers are shifting investments out of the country.

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Foreign companies are shifting investment out of China as confidence wanes, business group saysForeign companies are shifting investments and their Asian headquarters out of China as confidence plunges following the expansion of an anti-spying law and other challenges, a business group said Wednesday.
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