Carrefour not planning to quit China

The China General Chamber of Commerce yesterday came out to refute recent reports that claimed international supermarket chains such as Carrefour and Tesco were considering exiting the China market, according to a report in today's Beijing News.

The China General Chamber of Commerce, a non-governmental commercial organization, claimed that some foreign media outlets had spread the rumor in an attempt to portray a deterioration in China's investment environment.

Yesterday, an official from China General Chamber of Commerce said Dai Wei, the vice president of Carrefour China and the company's corporate affairs director, had recently paid a visit to the chamber and told them that "Carrefour is firmly committed to long-term development in the Chinese market."

Due to increases in labor costs, some foreign enterprise have shifted to regions with cheaper labour. According to the Ministry of Commerce, in the first seven months of the year, the number of new foreign companies being set-up in China dropped 12.3 percent compared to the same period last year.

Source: www.eeo.com.cn