The tremendous macro$-$economic performance of China is well known. For the past three decades, multinationals have poured is$,$ looking to serve growing demand. Although it accounts for only

China's remarkable economic growth is widely documented. For three decades, multinationals have flocked to the country, eager to serve its booming consumer base. While accounting for only around $8\%$ of global private consumption, China has contributed more to global consumption growth than any other nation in recent years.

Companies like GM$,$ Louis Vuitton, and Apple have amassed substantial profits in China. However, worrying signs now suggest that the gold rush is slowing, even potentially ending, according to some dire predictions.

Several companies have already exited the market. Revlon announced its complete withdrawal, while L'Or$$al$,$ the world's largest cosmetics firm, discontinued its popular Garnier brand. American electronics retailer Best Buy and its German rival Media Markt have also departed.

Tesco, the British food retailer, abandoned its solo venture and opted for a joint partnership with a state$-$owned company. Others remaining in the market face challenges. IBM reported declining revenues in China for several quarters, while R$$my Cointreau, the French drinks group, saw its Remy Martin cognac sales plummet by over $30\%$ in the first three quarters of last year due to a sharp decline in Chinese demand. Similarly, Yum Brands, the American fast$-$food giant, declared a $16\%$ year$-$to$-$date decline in its Chinese same$-$store sales in September $2023.$

The "Sinodependency Index," encompassing $22$ S&P $500$ companies with a significant portion of their revenue derived from China, factors in market capitalization and China$-$sourced revenue share. The index includes chipmakers Intel and Qualcomm, Yum! Brands $($owner of KFC and other restaurant chains$),$ Boeing $($aircraft manufacturer$),$ and Corning $($glassmaker$).$ While Sino$-$dependent firms previously outperformed their peers, their share prices have lagged behind in the past two years.

As a result, foreign companies seeking to remain and thrive in China must redouble their efforts to secure profits. Many will need to adapt their strategies to the evolving market landscape.

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Prompt $|$ Given this backdrop, along with developing sense of the global business environment, a key strategic recommendation would include which of the following:

Group of answer choices

Loosening operational controls to give Chinese subsidiaries greater strategic freedom.

Aggressively pursuing joint ventures with state$-$owned competitors.

Enforcing a One China policy that standardizes products and processes across the Chinese markets.

Closing up shop and looking elsewhere in the world for the market that would substitute for potential consumption of China

Shift from going for raw growth to enhancing operational efficiencies and productivity.