McDonald's not retreating from China

FAST-FOOD GIANT MCDONALD'S CORP on Monday announced the sale of 80 percent of its Chinese mainland and Hong Kong operations to a consortium including China's CITIC Ltd and the Washington-based private equity company Carlyle Group LP in a deal worth up to $2.1 billion. Beijing Youth Daily commented on Wednesday:

Under the agreed terms, CITIC and its investment management unit CITIC Capital will acquire a 52 percent stake in McDonald's operations in the mainland and the special administrative region and Carlyle a 28 percent stake.

Although the deal is yet to be closed, it has given rise to concerns that the fast-food chain is backing out of the Chinese market amid increasingly intense competition. The rise of local fast-food chains has posed a challenge to its leading position and overall profits.