Bear in a China shop: MNCs look for exit

China has lost its sheen for some foreign companies. But although getting into the country might have seemed difficult, getting out can prove even tougher.

Foreign executives facing competition from their Chinese rivals could do with taking some advice from Sun Tzu “He who knows when he can fight and when he cannot will be victorious.”

Ride-hailing firm Uber had been fighting hard for business with local rival Didi Chunxing for three years, offering consumer rides at below cost in an attempt to win market share. But after losing several billion dollars in the country and seeing the government ban its subsidy strategy the tech darling decided it was not the time to fight. It handed over its China business to Didi in exchange for a 5.89% stake in the combined company.

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