Chinese dragon losing its shine for foreign firms

Beijing

THE once-irresistible allure of the Chinese market to foreign multinationals is losing some of its lustre as slowing growth in the world's second-largest economy hits their sales.

The latest figures from firms reporting during the current results season in Europe, the United States and Japan paint a picture of overseas firms facing a worsening of operating conditions in China.

Volkswagen, which has invested heavily in China and has just displaced Toyota as the world's leading car manufacturer, saw sales in the country - which it describes as its "second home market" - fall 3.9 per cent in the first half, its first drop in a decade.

"We are keeping a very close watch on global macroeconomic trends," chief executive Martin Winterkorn said in a statement, "especially where there are uncertainties…