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The phrase "foreign competitor" is correct and usable in written English.
You can use it to describe a company from another country which is competing with your company in the same market. For example, "Our company has faced increasing competition from a foreign competitor over the past few years."
Exact(32)
"This country can't be a patsy to a foreign competitor," Senator Jeff Sessions, of Alabama, said.
Remember, as the global reserve currency goes, there's still no plausible foreign competitor to the dollar.
Ahansal or Morabity may have the same strength as a foreign competitor, but their upbringing separates them.
Moreover, Aeon will be keen to stop Daiei's retail network going to Wal-Mart or another foreign competitor.
In South Korea, where Samsung's achievements are a source of national pride, many perceived a bias against a foreign competitor in the American jury verdict.
And I was to be the first – and only – foreign competitor, grabbed off the street by the TV crew earlier that day.
Similar(26)
Customs officers are bent, hindering foreign competitors.
Still others are moving to foreign competitors.
High tariffs, meanwhile, kept out foreign competitors.
"FOREIGN competitors are destroying an American success story.
It also gives Matsui an edge over foreign competitors.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com