Global Chinese firms try ‘decoupling’ from China as US business climate turns hostile
- Public relations specialists note a growing trend of Chinese companies trying to localise their image and operations to remain competitive in the US
- Between perceived security threats and an emphasis on new supply chain alternatives, US policies have left Chinese firms scrambling for cover
The communications manager of a multinational tech corporation that makes sustainable smart devices in China stressed that it is a global company, not Chinese.
The company’s public relations materials say it has “operational headquarters” in the US, Europe and another Asian country, but don’t mention Shenzhen – though its official website names Shenzhen on top under “headquarters”. And the company plans to move its manufacturing somewhere outside China.
Founded by a young Chinese tech entrepreneur five years ago, the green energy business has a current market value of more than US$1 billion, a leader in its field.
Yet the communications manager spoke on condition of anonymity, both for the company and herself, due to the sensitivity of the issue.
That’s because in the US, “Made in China” and “China-based” – once-proud labels for many businesses with ambitions of promoting Chinese ingenuity and quality in international markets – are now politically toxic, often drawing regulatory scrutiny and public distrust.
The regional head of another China-based company in the US, who also requested anonymity, said the firm’s objective now was to remain as low-key as possible yet still pursue US opportunities while navigating new restrictions and political squabbles.