Pruning the corporate tree in China

After two decades of rushing to invest into the country, foreign multinationals are now rightsizing their portfolios. That effort will take smart planning and execution, as the intricacies of doing business in China can make business exits challenging.

At a glance

• China has always been a challenging place to do business. But those challenges have been largely overlooked, ignored, and brushed aside.
• Now that China’s economic growth rate has slowed dramatically, businesses should carefully reevaluate their China operations and consider culling underperforming or non-core assets.  
• But forward-looking management teams are well-placed to help their companies execute their exit strategies to right-size to China’s changing business climate.