Waning Fortunes: How Western Brands Are Adapting to China’s Changing Consumer Landscape

Morrison Foerster partner Xiaoxi Lin was recently quoted in the South China Morning Post titled, “Waning Fortunes: How Western Brands are Adapting to China’s Changing Consumer Landscape.”

The article explores how changing consumption patterns are prompting multinational companies to reassess their China operations, with private equity playing an increasingly prominent role in carve-outs and strategic repositioning.

Xiaoxi noted that Chinese private equity firms are increasingly emerging as active buyers when global conglomerates carve out noncore brands or business units—a trend underscored by MoFo’s role advising CPE on its strategic partnership to form a joint venture with RBI for Burger King China.

As Xiaoxi observed, the momentum is less about headline expansion and more about strategic fit: “Chinese investors step in where they can accelerate growth, strengthen supply chains, and bring a clearer cultural and market alignment to how the business operates, especially in China, which remains a critical market for many global brands.”

According to the latest LSEG data, in January 2026, merger and acquisition activity targeting Chinese assets supported by private equity started to pick up, with 135 deals worth USD 2.8 billion, more than double the amount in the same period last year.

Read the full article.