China’s appeal as a gold mine for foreign businesses is waning, and while some multinationals ponder their future in the world’s biggest consumer market, one group of companies is already headed for the exit.
South Korean firms are at the vanguard of what’s threatening to be a global shift away from China, with the higher tariffs and inconveniences of the trade war now compounded by disruptions wrought by the country’s zero-tolerance approach to COVID-19.
Retail giant Lotte Group, known for its department stores and supermarkets, is in the final stages of shutting its China headquarters and is pivoting its focus to other Asian markets, a person familiar with the situation said, asking not to be identified because they’re not authorized to speak publicly.