US Firms in China Watch Profits Plunge to Record Lows

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U.S. companies working in China are now watching their profits plummet to record lows. And this is not just limited to those from the United States—even European ones are watching the downturn of their businesses in China. The latest development is dashing beliefs that the market could improve. But new Chinese Communist Party policies that favor domestic companies, a tumbling economy, and an expanding global trade war now appear to be taking their toll. The development could also accelerate the process of companies leaving the country, facing dimming profits, which could likewise have a ripple effect through investment and then to the economy overall. We’ll discuss in this episode of Crossroads.