![]() 'Everybody is worried': China raids offices of consultancy firm Capvision in widening industry crackdown The view from the observation deck at Shanghai Tower, April 9, 2023. In a British Chamber survey last month, 70% of businesses said they were “adopting a ‘wait-and-see’ approach” on decisions to invest long term in the country. The uncertainty has led some firms to hold back on committing more money to China. The British Chamber of Commerce in China has also said its members are feeling unsettled, calling on the Chinese government to clarify regulatory guidelines. The campaign has had a chilling effect on US businesses in China, leading some to wonder “who’s next?” Michael Hart, president of the American Chamber of Commerce in China, previously told CNN. The investigations are part of wider efforts by Beijing to increase oversight into what is deemed sensitive information pertinent to national security. The announcement came after Chinese officials closed the Beijing office of Mintz Group, an American corporate due diligence firm, and questioned employees at the local branch of consultancy Bain. This month, state security authorities said they had raided several offices of Capvision, an expert network with headquarters in Shanghai and New York. The visits coincide with a crackdown on international consulting firms that has alarmed foreign businesses. That’s been driven by a number of factors, including fears that Taiwan could be invaded by the country and ongoing tension between Beijing and Washington.Īpple, long the poster child for US investment in China, has been doing just that. In recent years, Western companies have been under pressure to reduce the risk to their businesses by diversifying supply chains beyond China. “This is not decoupling, this is de-risking.” Over time, “there will be less trade” between China and the United States, Dimon predicted. ![]() Global companies warn of slower-than-expected recovery in China People walk past a booth of Estee Lauder at the third China International Consumer Products Expo, in Haikou, Hainan province, China April 12, 2023. The Wall Street boss met with Shanghai’s Communist Party chief Tuesday, where authorities say he was told the government hoped that JPMorgan would use “its international influence” to promote investment in China’s financial hub.ĭimon was later quoted in a Shanghai government statement as saying the bank would serve as “a bridge” for global companies to better understand and invest in the city.īut dealing with China has “become a far more complex situation,” he acknowledged in a Bloomberg TV interview Wednesday. Dimon’s visit to mainland China is his first in four years, according to a person close to the bank. Those reductions have kicked off a price war in China’s electric vehicle sector, the world’s biggest market for such cars.įor executives, the visits are a chance to reconnect with employees and rub shoulders with government officials for the first time in years. ![]() Tesla has been playing defense in recent months, cutting prices after losing market share to competitors in China, such as Warren Buffett-backed BYD Tesla did not respond to a request for comment about Musk’s visit, and the billionaire’s Twitter account was unusually quiet following his arrival. Musk was later also quoted by China’s commerce ministry as saying relations between the two countries were not a zero-sum game - where for one side to win, the other must lose. ![]() “The interests of the United States and China are intertwined like conjoined twins,” he was quoted as saying by the foreign ministry. ![]() Musk backed the view, saying Tesla was against the notion of “decoupling” with China. That theme was apparent Tuesday, when Musk met with China’s Foreign Minister Qin Gang, who called for “a healthy” relationship with the United States, saying it was “in the interests of both countries and the world.” To drum up business, Chinese leaders have urged foreign companies to invest more in the country, promising them an open and level playing field. Those limits are gone, kicking off an economic recovery in the first quarter that now appears to be sputtering. Until December, China was largely sealed off under stringent “zero-Covid” restrictions, escalating calls in the international business community to reduce their reliance on the country. China's Ministry of Foreign Affairs/Reuters Chinese Foreign Minister Qin Gang met Tesla CEO Elon Musk in Beijing on Tuesday. ![]()
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