Microsoft's decision to close two Nokia's mobile phone factories in China will result to the loss of jobs of about nine thousand workers.

One of the factories is located in Yizhuang Hi-tech Industrial Park in Southeast Beijing and the other plant is in Southern China.

Microsoft is Nokia's new owner and it has decided to relocate its operations in Vietnam.

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The company's spokesperson Stetti Cao says, the movement of their operations is based on "an adjustment of production capability based on current levels of demand."

She says, they are headed for Southeast Asia where market prospects for its phones are brighter.

Nokia's factories in China produce the mobile phone company's Lumia models.

But these units did not sell well among local Chinese consumers.

Rosemary Coates, founder of Blue Silk Consulting firm in California, says, this reason also prompted Microsoft to look at neighboring markets.

She says, there is a "swelling trend among foreign brands toward making the commodities as close as possible to consumers who will purchase the products."

Another reason being cited for the transfer of Nokia's operations is the low production cost in Hanoi.

Jetro, a Japanese trade agency, reports, that in 2012, Vietnamese wages accounted for only a third of wages for Chinese laborers.

With Nokia's relocation to Vietnam, there are analysts who say that China may have ceased to be the bright star in the global capital's summit.

The European Union Chamber of Commerce in Beijing says, the 'golden age' for business in China is coming to a close.

They say that these days, China has become a difficult place to do business, and this situation is turning off many foreign firms.

Foreign investors are also want to avoid China's air pollution.

But some analysts say, the investors main fear is that China's economy has slowed down.

A target growth of seven percent may seem high, but this is still mediocre, compared to the country's trail-blazing double digit growth rates in the past 3 decades.

There are even predictions that China's performance in the coming years may further weaken.

But even in the midst of these bleak forecasts, analysts also say, China remains to be an enormous market for multinational companies, and this fact cannot just be shrugged off.

After all, its economy remains to be the second largest in the world, after the United States.

TagsNokia, foreign investment