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How Chinese companies can survive in the US

40 0 3
22.01.2019

For Chinese companies planning to do or doing business in the United States, the climate looks rather bleak. A slew of high-profile accusations of intellectual property and data theft against Chinese entities, along with FBI director Christopher Wray’s pronouncement that “no country poses a broader, more severe long-term threat to our nation’s economy and cyber infrastructure than China”, have further eroded a business environment already affected by tariffs, an overhaul of the Committee on Foreign Investment in the US (CFIUS) aimed at Chinese firms, and nationalist politics on both sides.

But this does not mean Chinese companies can no longer do business in the US.

In the 1980s, anti-Japanese sentiment spread through the US, where workers resented losing jobs to Japanese auto manufacturers. In response, Japanese companies opened plants in American cities and hired American workers. They partnered with American companies and shared manufacturing techniques, and they invested in local communities through grants and charitable donations.

Indeed, improving American communities is a tradition that Japanese companies continue today through a range of conservation, education and safety programmes. More than half of America’s top 20 bestselling cars are now Japanese, illustrating the success of this integrated business and public relations approach. Chinese companies can similarly prepare for a new legal and political paradigm in the US, even as agencies throughout the US government tweak their approaches to China.

For example, the US has tightened export controls with the apparent purpose of restricting China’s access to emerging, sensitive and critical........

© South China Morning Post