Labor unrest at Danone, Coca-Cola and Sony factories in China has cast a spotlight on a quiet pullback by some multinationals struggling with rising costs, a slowing economy and growing competition from homegrown rivals. At the same time, others like fast food giants KFC and McDonald’s are also retooling their China strategies in a bid to strengthen their market position after several years of weak growth. According to Caixin, while the pullback has been especially poignant in the manufacturing sector, the receding tide is increasingly affecting the consumer space and some of China’s oldest multinational citizens. Industry observers have cited a number of reasons for the pullback, which has gained momentum over the last five years in the face of rising labor costs and China’s economic slowdown after two decades of breakneck growth.
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