Summary
Western firms are struggling in China as economic stagnation, rising local competition, and geopolitical tensions hurt their prospects.
Sales for U.S. and European companies like Apple, Starbucks, and Volkswagen have fallen since peaking in 2021.
Companies face slowing demand due to China’s housing crisis and deflation, while Chinese competitors like Huawei and BYD dominate markets.
Additionally, U.S.-China trade tensions, including new American chip restrictions and retaliatory measures by China, are escalating risks.
Foreign firms increasingly see China as a challenging market, with growth prospects dimming amid mounting political and economic headwinds.