China and the Foreign Investment Crisis
The trade and political battle between China and the United States and its allies has had a significant impact on financial interactions and investments in the country. We have previously discussed the unfavorable situation of foreign companies in China and serious actions to reduce activities on Chinese soil by some large companies like IBM and Microsoft.
Recent news in this area indicates increasing dissatisfaction and concern among business and finance operators in China. The American Chamber of Commerce in Shanghai, in its recent report, has found from the assessments and opinions of its member companies that only 66 percent of the organization’s member companies, which are key players in foreign trade in China, have reported profitability of their activities in China.
Major members of this organization are dissatisfied with the fluctuations in China’s economic situation and the political pressures from the ruling party on foreign companies. This dissatisfaction is also reflected in the recent report by the US-China Business Council.
It should be noted that the aforementioned profitability rate is the lowest in the history of the American Chamber of Commerce’s reports in Shanghai.
Meanwhile, amid various economic and social crises in China, a simple and fundamental point alone highlights the unfavorable situation: China is facing a demographic aging crisis and a reduction in the workforce, and it is in need of foreign capital and labor.
This shortage is so significant that China has officially announced an increase in the retirement age. The retirement age for men will rise from 60 to 63 years, and for women from 50 to 55 years, which for women in easy and so-called white-collar jobs will be 58 years.