Joined Nov 11, 2007
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Companies Keep Running a Gauntlet of Pitfalls in China

“Recent troubles in China for Apple Inc. AAPL -1.13% and Volkswagen AGVOW3.XE -0.03% represent a growing risk for global companies, as their dependence on the booming Chinese economy leaves them exposed to Beijing’s shifting winds.

In some cases, foreign companies are coming under withering attacks from state-run media. In others, they are running afoul of Chinese regulators or government policies, such as an anticorruption campaign that limits ostentatious gifts.

On Monday, Apple apologized for its Chinese customer-service policies and said it would revamp them following more than two weeks of criticism from government-run media. It isn’t clear whether the spotlight will hurt Apple in what has become the tech giant’s No. 2 market after the U.S.

Late last month, Volkswagen said it would recall 380,000 vehicles following a television broadcast that said some of its cars suffered from maintenance issues. Analysts said the move could cost the auto maker up to $618 million. Fast-good giants Yum Brands Inc. YUM +0.12% andMcDonald’s Corp. MCD +1.32% took sales hits after state media accused them late last year of failing to quickly address problems with chicken suppliers…..”

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