Corporate risk calculus re🇨🇳is being turned on its head. After decades in which cos most feared being locked out of one of world’s largst markts,Wstrn firms are starting to realize that even faintest link to Xinjiang’s “re-education camps” can be toxic...politico.eu/article/wester…
"...to their reputation (remember Volkswagen’s China CEO’s cringeworthy interview with the BBC?). As companies weigh the risk of doing business with Beijing, it’s a safe bet that many more will discreetly do a Stora Enso and leave."
"Beijing’s belligerence isn’t helping its cause — as orchestrated boycotts against even its mildest critics present yet another unpredictable risk to the bottom line.Campaign calling for H&M 2B boycotted erupted on Chinese social media.
"Swedish fast-fashion retailer was de-platformed from Chinese e-commerce sites.Its crime:in 2020,it mentioned that it was concerned about human rights in Xinjiang."
This puts cos in an untenable situation. Capitulate to Chinese pressure & face wrath of Wstrn consumers. Or speak out against human rights violations & risk retaliation from Beijing.
"Even for company executives who are convinced there’s no slave labor in their supply chain, just staying in China comes with reputational risk and exposure to the caprices of the Chinese government."
Pulling back from🇨🇳wil come at cost.Not only can it boast an enormous,growing consumr markt,it accts for 28% of world’s manufacturing-more than US,Japan & Germany put togethr.Whether co. is manufacturng or selling in🇨🇳,it will be hard to reduce reliance w/o also reducing revenues
"Shareholders will put up w/ a dip or two in share prices when Chinese anger erupts or Western consumers vote with their wallets,but not if it begins to happen regularly. Most of all, shareholders prize stability — and stability may no longer be possible on the Chinese market."
• • •
Missing some Tweet in this thread? You can try to
force a refresh
