Western companies are slowly insulating their China operations from the mounting tensions over trade and geopolitics between Beijing and the west, as governments call for increased “de-risking”.
The notion, which has replaced the radical “decoupling” as a diplomatic buzzword this year, is a sign that the west is seeking a less antagonistic approach to managing relations with China. But businesses have yet to formulate clear strategies to give it substance, analysts say.
While a small number of companies such as US toymaker Hasbro have announced plans to quit manufacturing in China completely, the vast majority are still weighing their options, which range from partial divestments to delayed spending decisions and ways to make their China operations disruption-proof by having them serve only the Chinese market.