Aligning Ambitions: How to Adapt to China’s Ideological Resurgence

March 10, 2023

‘It’s important to know how your business fits into China’s ideology and strategy. Executives need to be able to describe how their business aligns with China’s goals.’

‘If you are a company that needs China, then you need to know who your friends are. What companies depend on you? Who will go to bat for you if you become targeted? Once you know the answers, you need to put together a plan.’

‘One of the great myths about China is that the government is monolithic and moves as one. Local governments can effectively protect companies that they like and deflect Beijing’s pressure. A firm, which is not part of Beijing’s big plan, still may be a vital contributor to the local economy.’

‘Create opportunities for the CEO, managing director and others to get involved with the local government. Even small companies cannot afford to ignore this step. At the beginning, it might be advantageous to hire a consultancy to help make introductions.’

‘If you start to get visits and see problems occurring, then leveraging relationships at more powerful levels within the supply chain can help. You may want to go to the OEM and see what they can do for you. A better partner might be a Chinese SOE client and your local industrial park contacts.’

In many markets, firms must meet environmental, social, and governance objectives to be considered successful. Meanwhile, in China, ideologically driven policies are experiencing a revival, and GDP targets are no longer the primary focus. Businesses that find common ground with China’s objectives and utilise preferred terminology will gain a competitive edge.

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