European Union Chamber of Commerce in China

Foreign companies are shifting investments and their Asian headquarters out of China as confidence plunges following the expansion of an anti-spying law and other challenges, a business group said Wednesday.

Trucks carrying hi-tech car components rumble in and out the gates of an American industrial zone in the heart of China's rust belt -- using roads that the city especially renovated for the complex.

China's overcapacity in heavy industries is wreaking "far-reaching" damage on the global economy, with steel production "completely untethered" from market demand, the European Union Chamber of Commerce in China said on Feb. 22.