[Washington Examiner] Top Western companies continue to abandon operations in China and Russia, highlighting the obstacles to profitability in the powerful Eurasian countries.
On July 18, fast-fashion retailer H&M announced that it would be "winding down" its operations in Russia due to "current operational challenges and an unpredictable future," becoming the latest business to depart Russia as a result of its attack on neighboring Ukraine. The invasion has killed thousands of civilians and demolished cities, prompting global outcry and sanctions.
"After careful consideration, we see it as impossible given the current situation to continue our business in Russia," Helena Helmersson, CEO of H&M Group, said in a statement.
That same day, automotive manufacturer Stellantis revealed that it was ending a joint venture with Guangzhou Automobile Group, or GAC, to build Jeep vehicles in China and would instead focus on importing the SUVs. Stellantis cited "a lack of progress in the previously announced plan for Stellantis to take a majority share of the GAC-Stellantis joint venture" as the reason for the exit.
"Stellantis intends to cooperate with GAC Group in an orderly termination of the joint venture formed in March 2010, which has been loss-making in recent years, and will recognize a non-cash impairment charge of approximately €297 million in its first half 2022 results," the company said.
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