Western financial firms are reducing their operations in China due to the country’s sluggish economy, which fell short of expectations in 2023. Companies such as Fidelity International, Morgan Stanley, and Legal & General have suspended expansion plans or cut jobs in the region. Goldman Sachs, JPMorgan Chase, and Citigroup have also cut investment banking positions focused on China. Despite the drawbacks, most firms are not withdrawing entirely, waiting for China’s economic recovery.