Multinationals see risk to China profits amid probes

As China steps up its antitrust investigations into sectors ranging from auto parts to technology, foreign multinationals may see the profitability of their operations there decline, Bloomberg reported. At least seven automakers and major technology firms have been probed in the past month. Foreign firms are struggling with the challenge of interpreting vague rules in an economy that is no longer as reliant on foreign investment as in past decades. “We may be seeing a paradigm shift where the rules of the game are changing,” said David Loevinger, an analyst at TCW Group. “Until people figure out the new rules it will create a much more uncertain business climate.”