CHINA-ECONOMY: UK FIRM TESCO EXITS CHINA
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Well-known new Chinese newspaper The Paper reported on February 26, that the British retail giant Tesco had recently announced the sale of a 20 percent stake in Gain Land to China Resources Group (also known as CRC). Gain Land is a joint venture between Tesco and CRC. This 275 million Pound deal marked the final exit for Tesco in leaving the Chinese market. The Paper said that from the beginning, Tesco’s Chinese venture did not do well. It changed its strategy later and partnered with CRC to continue with its 135 branch stores. Tesco has been retreating from major overseas markets, including Japan, the United States, and South Korea. It is also looking at exiting Thailand and Malaysia. Tesco plans to focus its business on Europe. The company said that the income from the Chinese CRC deal will be used for day-to-day operations.
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