The Rising Influence of Rising Affluence

[DewDiligence]

More on multinational companies seeking to ringfence China:

https://www.wsj.com/articles/companies-try-new-strategy-to-stay-in-china-siloing-61c88721

Russia’s war in Ukraine has pushed many boardrooms to discuss contingency plans for a potential China-Taiwan war, business advisers say. In a worst-case scenario, some executives fear they may have to write down or hive off their China business, as was the case with Russia.

Russia was relatively easy to relinquish in that it comprised a minuscule portion of sales and profits of most multinational companies (excluding the oil and gas industry). China is a different story, however; there are many multinational companies in various sectors of the economy who derive more than 10% of sales in China.