Why big business is eyeing a China exit I DW News 

I think China prefers their own products nowadays….

Good news for the EU

Last time I checked, BASF, Volkswagen, and BMW were still increasing investment in China. But Volkswagen plans to close its German factory. Intel puts German plant plans on hold.

Fun fact, if you had invested 100 Dollars in the Shanghai index in November 2006, today you would have had 100 Dollars.

I thought BASF and BMW are moving to China, not the other way round. 😂

DW has received its share of 1.6 billion dollars. Good for them.

Actually, most of foreign companies get difficult is just simply that their product is not competitive anymore comparing with domestic products,Ike VW, not really just simply economic struggling.

Five straight quarters of deflation (according to the National Bureau of Statistics of China).

China have no worries. If , for example, Nestle left…..there will be many companies who will rush to fill the void. If Adidas left……the Chinese consumers will buy LiNing or other Chinese brands. Trade is a win win. The Chinese inflation is low …..the consumers are loaded up with bank savings. If European companies left ….there will be other brands rushing to fill the void.

Not one word about human rights or worker exploitation, just pearl-clutching over unaccountable investors getting less money for doing nothing. Small-minded, boring people.

I mean to be fair China has already had economic problems for a long time even when Google exited China back in 2010

The true is that foreign firms in China face stiff competition from their Chinese competitors in Chinese market and abroad. They are not winning in Chinese market and retreat to less competitive market in their home country.

China has already developed their own companies and brands that they do not need those foreign brands any longer other companies like Apple and etc… have gradual share decrease due to stiff market competition. Why should the mainland Chinese buy products by foreign brands if they already have their own? Just like Asian countries such as Japan and South Korea prefers to buy their own products, China’s path is switching to that direction as well.

😅Doesn't that mean they're just unable to compete so they withdraw like General Muthor did?

Western firms, despite all the IP theft, still was okay with trading with China?

Apple+Foxconn learn a lesson in India ? iphone 16 need to return to assemble in China Taiwan's Foxconn, the world's largest contract electronics maker and Apple's biggest iPhone assembler, said it plans to invest 1 billion yuan ($137.5 million) to construct a new business headquarters in Zhengzhou, central China's Henan Province.

in fact big business is not eyeing, but doing, germany exit.

Every company should support human rights, humanity first.

*China🇨🇳 have border/maritime disputes with Taiwan, Tajikistan, Pakistan, Bhutan, Japan, India, Vietnam, Philippines, Malaysia, Brunei.* make border/maritime agreement & Peace!

I guess the short term promise of increased profit margin for lower wage and regulation doesn't balance out the eventual certainty of your IP being stolen, your supply chain cut out from under you and your company replaced with a replica

Good news for Chinese customers, local brands will quickly fill the hole with reasonable priced clothings and low-tech to mid-tech products, nobody gives a dime about europe's leave.

They just can't compete

All the big European brands will in the end be forced out by the local Chinese brands when all their technology is being transferred to the Chinese. European brands simply cannot compete with the cheapness of the Chinese brands.

how many little reds will there be in this chat kicking off? part of the problem

At least our phones don't explode 😂

No to China

Meanwhile, german investment in china is at a record high level. According to dw only. 😂😂😂

The U.S economy is not heading in a more positive direction it's heading for an economic slowdown.

The examples given at the beginning are all due to failure in competition with domestic company resulting in insufficient profit to support further investment, which is not convincing considering German investment in China just reach a record high a few months ago according to Reuters.

Crucial question for big businesses are 1) are you confident in your abilities to win competitions in China? 2) Can you afford not to invest in China? 3) What other markets you have to get if you exit China market?

The main thing is production: tech and facilities. You take Nike shoes, change the label - here's your Anta. There you go: Chinese ANTA and 361 are already in the NBA✅️ Many U.S. and EU companies will struggle now: China is changing labels on everything, and everything is made in China. The U.S. and EU corporate has won some quick big bucks, but the countries have lost in the long run, layoffs are coming in waves, watch it.

Exiting China and separating the supply chains to China vs Everywhere else

China is the biggest investor all over the world. China is the biggest exporter of goods. Therefore, it needs no foreign investor in China. China is investing in other countries.

Cars, mobile phones, laptops, etc, due to the intensified competitions among Chinese companies, the price is much lower to buy home-made brands than foreign brands. There are more and more machine-managed works. A lot of low-tech industries use robots rather than human. Robots are everywhere, in hotels, in restaurants, on the road (replacing taxi), factories. In the high-tech field, it is different.

Companies such as Mitsubishi Motors are exiting the Chinese market because their vehicles are no longer competitive there, and Honda is expected to follow suit. IBM's departure is driven by Washington's restrictive tech export policies; in response, Beijing has chosen to phase out IBM mainframes nationwide to minimize the risk of disruption if IBM can no longer provide support due to government actions. As China ascends the value chain, I foresee that some businesses will relocate, much like they did decades ago when they sought more cost-effective manufacturing bases overseas.

Please make videos based on facts and figures rather than on perceptions and assumptions.

Everyone seeing this video knows the position of DW.. just DW never officially announced it. There are different parallel worlds in RU-vid, we must realise this. Never too serious and please keep giving funny comments.

how did DW make such a conclusion? the reality is exactly the opposite, there are no better places in China that are more attractive in the world… the only reasons that some western companies are leaving is that they can not compete with Chinese domestic rivals…

Starbucks is way too expensive compared to local brand (even more expensive than in its home market), and usually the local brands taste better

Very helpful nuanced coverage without dipping into unhelpful relativist coverage. Thank you.

Decouple, Decouple.

mentioning mitsubishi really derails the narrative. mitsubishi is a loser, period.

Thanks for the continuous update! I am super excited about how my stock investment is going so far, making over $32k weekly is an amazing gain.

I don’t see how EU is any much better in economic performance.

This is good news. And I'm from Ph 🇵🇭

It is only the losers who cannot win the competition that leave, otherwise it is their loss to leave China. China has the best infrastructure in the world, the best industrial workers, an efficient and clean government, abundant and low-cost energy, and of course, the most populous market.

Running a business is like boxing. There will always be new boxers on the scene, and they might even be your own students. You have to keep training and keep getting better. Otherwise, you would lose your title. Nothing is forever.

India is rising as the US shifts its business there from China. Same with Vietnam, Mexico etc. Nice to see the EU finally waking up. Even tho the EU is destroying its car market by allowing cheap heavily subsidised Chinese imports.

Help, the European are we thinking. Not the end of the world.

It is long over due to leave china.

Yeah they’re moving to Vietnam ir Indonesia 😂 it’s not like the West is going to reindustrialise!

everyone is eyeing the next market and their next consumers. after all, china is still the world second largest economy and its consumer market is bigger than singapore + japan + south korea market combined. I would bet i am selling more in china market than I do with the japanese market in term of profit and volume.

That is not ture. No big companies can resist the China tempt. Instead, I heard many big companies are considering moving out of Germany, e.g. VW.

Ironic since alot of European companies go to Beijing now lol

it is a hard decision for EU company to stay in China, not bcoz of IP issue or other bs. But because the competition is so intense here. Every company need to keep agile, innovate and work hard in order to stay in the game. So it makes a lot of sense for CEOs to leave China, they can keep a good looking 2024 report without investing future and challenge themselves. But, what will happen after a few years. Just look at the EV market and the solar panel market. You know the answer.

The problem is there are no other place can replace China as prime manufacturing country .

Come to NA :D Mexico population pyramid is looking gorgeous, US has the benefits of being... well the US, and Canada is perfect for high tech and energy investments.

The advanced economies finally seem to have realized that China is not interested in playing by the established customs and rules for international trade. Its too bad because Chuna integrated in the world economy would be good. But China doesnt want to move to a level playing field, so it isnt going to happen.

lol they can’t compete anymore simple

When Losers lose the competition, they either complain or they just scale down or run away😂😂😂😂😂😂😂😂

Life in the West is really good, you just have to talk nonsense to have a decent life

Dictator Xi follows Dictator Mao. Epic economic bunglers.

This concludes is evident for observers.The national security issue is positioned in more important than how to prompt economic development for incumbent rulers of CCP.Xi Jinping’s administration inclined to focus more on uphold totalitarian rule rather than keep going on the strategy of opening and reforming.I think this is an absolutely truth.

“Cull ALL the Birds!”-Mao Zedong “Egg Fried Rice anyone?-Mao Anying “Me like left nostril most!”-Mao Xinyu “I’LL plan the economy!”-Mao Jinpork “China is safest county in world!”-Xu Ganlu “Corruption is rampant in China!”-Victor Gao

Europe faces a clear tradeoff: accessing the Chinese market versus protecting the EU single market from Chinese competition, which can be managed through tariffs. But this is distinct from the larger issue-the global competition with China for exports is only intensifying. To succeed, we must focus on improving our competitiveness, not on blaming China for unfair practices. Many countries, particularly those with colonial histories, don’t see Europe as a victim or China as a bad player. From my global work experience, it’s clear that Europe’s soft working conditions, including limited working hours, are no longer sustainable in today’s competitive landscape. Furthermore, the relatively low salaries for top talent and engineers, compared to minimum wage jobs, fail to incentivize people to pursue higher education, weakening our competitive edge even more. Europe urgently needs to streamline bureaucracy, shift away from excessive socialism, and focus on investing in high-value industries that can boost exports. The reality is European companies are losing market share, and without decisive action, the outlook will remain bleak

The hype is over, but it was already overdue long ago. Also, the short term gains for long term increased competition was obvious already some 20 years ago. That is nothing new. But somehow, the longevity of companies never seems to be a high prio.

Good. Economics can be more powerful than weapons.

The days of making easy money in China are over. You have to be competitive (values and fits for Chinese customers) in China market to prosper. Chinese market becomes the most competitive market in the world.

"" No Trust ""

That is a positive outlook when the universe is not under dead threat by the treacherous

Is BASF an European company?

I’m so grateful I’d only allocated a small amount of my portfolio into the CSI 300 . literally everything else I’ve invested in the last decade has done better than that inside-joke of an economy.

DW should also declare it is managed by the US States Dept

It is quite simple . If a company does not want to be present in China , don’t . Others may choose differently . VW plans to close factories in Germany because of lack in demand in Europe not because of risk in China . VW’s challenges in China are for different reasons. Not unlike Japan where Japanese auto manufacturers are the market leaders it stands to reason that Chinese Automakers were eventually going to become the market leaders in China The same is true for the USA .

I would say great risk, no reward, they force you to give them the knowledge then use it to compete with you.

Let me know when VW exits, DW news.

Because those “big businesses” were too complacent hence lost their competitiveness in China.

Nice try

but Germany opanies happy to invest bllions as there export import tags lies with CHina , even though Germny government has come with China Policy

can they survive in Chinese markets? Shameful report

😂 If Eastern Standard Time is on the east coast of the United States, then who is the West really? ✌️🤣♟️ULA

2% of 1.6 billion getting cashed soon I guess

Good looking anchor!

Are we talking about vw or basf?😂😢

Decoupling

Intellectual property right 😂 take a look at how many technological breakthroughs and innovations made in China in the last two decades vs in EU😂

Its simple. They cannot compete anymore as they are behind chinese innovation speed

Beardsley's the best.

You mean totalitarian states are risky at best ? Russia, China, .... Who would have ever known.....

DW, why did you delete the original video and re uploaded this one? Let me quess, people in the comments were calling you out on your bull****!

At what cost, DW?

ANTThewhizkey is in nearly all comments Why ?

The most competitive ones stays and the rest are simply beaten out of the Chinese market. I work in chemical industry, the European and American suppliers are long beaten out of the Chinese market, where back in 2000 they had no competition and was dominating the market.

Nahhh....do you want money or not 😑😑😑

How about China kick VW out of Chinese market?

Full of BS. If it's true China restricted market access, intellectual property issues, vague investment rules, then why they went to China in the first place?

Come to India

Who are you going to invest in now?in India?

The losers are leaving China ofc😂😂😂

It didn't work that well se he is going to create a much powerful one