Other areas become open for competition as a result of regulatory reform. More foreign-funded travel agencies in Shanghai and Chongqing will be allowed to conduct outbound China tourism services from 2023 to 2024.
Under varying degrees of political pressure, some American firms are abandoning China. Many are not bringing business home — as is US President Joe Biden’s intention — but are simply chasing cheaper labour in Cambodia, Vietnam and Bangladesh.
The partial withdrawal of service and consumer companies from China leaves a vacuum, and like all vacuums, it will get filled. Some of these newly exposed gaps will be filled by domestic Chinese companies. Once competitors, they now find the competition is withdrawing, so it gives them room to expand.
