Dutch lender Rabobank has recently closed its Beijing branch, ending nearly 30 years of its financial operations in China. In addition, several other companies in China, including Korean cosmetics, have also closed their retail stores in China.
According to the China Quality News, the China Banking and Insurance Regulatory Commission announced its approval of Rabobank’s closure of the Beijing branch.

Rabobank, a multinational banking and financial services company, is the second-largest bank in the Netherlands and has many branches worldwide. It initially established a representative office in Beijing in 1994 and then later developed the office into the Rabobank Beijing branch in 2012.

Before Rabobank, ABN AMRO also closed its Shanghai branch in September last year. According to an announcement from the China Banking and Insurance Regulatory Commission, ABN AMRO’s Shanghai branch ceased all business activities and returned its financial license to the local banking and insurance supervision bureau from September 22, 2021.

According to mainland media, a large number of Japanese and Korean companies have been closing their stores in China as well.

Recently, HERA, a well-known cosmetics brand of Amorepacific, the second-largest cosmetics company in South Korea, announced closing down its retail stores in China and planning to shut down part of its online business in mid-March.

The Wall Street Journal on March 8 cited a survey by the American Chamber of Commerce in China reporting that foreign companies feel hesitant about investing more in China due to concerns of slowing economic growth and increasing tensions between China and the U.S.

Foreign businesses said that the U.S.-China trade war was what concerned them most. Apart from that, unstable or obscure regulations and increasing labor costs in China were other leading concerns.

The report found that less than 50% of the survey respondents were optimistic about the Chinese government’s support on foreign investments over the next three years, down from 61% in 2021. More than one-third thought of reducing investment in China as a consequence of an uncertain policy environment.
In addition, many respondents thought that the travel restrictions from the zero-tolerance policy towards Covid-19 in China also made attracting and retaining foreign talents more difficult.

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