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 around $8$ percent of private consumption in the world, China contributed more than any other country to the growth of consumption over the past several years.

Firms like GM$,$ Louis Vuitton, and Apple have made fat profits there. Now there are worrisome signs that the gold rush is slowing and, some direly forecast, coming to an end.

Some companies are leaving. Revlon said in that it was pulling out altogether. L$$Or$$al$,$ the world$$s largest cosmetics firm, said soon afterwards that it would stop selling one of its main brands, Garnier.

Best Buy, an American electronics retailer, and Media Markt, a German rival, have already left. Tesco, a British food retailer, has given up trying to go it alone, and entered a joint venture with a state$-$owned firm.

Some of those who are staying are struggling. IBM said that revenues in China have fallen for serval quarters. Remy Cointreau, a French drinks group, reported that sales of its Remy Martin cognac fell by more than $30\%$ during the first three quarters of last year because of a plunge in China. Yum Brands, an American fast$-$food firm, said in September last year that same$-$store sales in China had fallen by $16\%$ in the year to date.

Relatedly, the $$Sinodependency Index," comprising $22$ members of America's S&P $500$ stock market index with a high proportion of revenues in China, weights the firms' market capitalization and the share of their revenues they get from China. It includes Intel and Qualcomm, both chipmakers; Yum! Brands, which owns KFC and other restaurant chains; Boeing, which makes aircraft; and Corning, a glassmaker. Sino$-$dependent firms used to outperform their peers, but in the past two years their share prices have done worse than others.

Consequently, foreign companies that want to stay and succeed in China will have to put in even more effort to ensure profits. Many will have to adjust their strategy for a changing market.

$***$

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

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

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

Loosening operational controls to give Chinese subsidiaries greater strategic freedom.

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