Recommendations for European Companies in China
Maintain strong communication between company HQs and China operations, to ensure that HQs receive accurate, on-the-ground information in order to make informed investment and operational decisions.
Continue to integrate foreign staff into China operations—as well as Chinese staff into global operations—in order to maintain diverse teams and avoid talent silos.
Establish ‘decoupling teams’ to evaluate the costs associated with both localisation in China and disconnection from certain global systems.
Develop a cost/benefit analysis of adopting either a ‘flexible architecture’ model that can be localised for different markets or a ‘dual system’ model that completely separates China production from production for the rest of the world.
Continue to monitor areas of potential political risk or backlash.
Develop strategies that can allow for quick adaptation to changes in markets, public opinion and governments that could have an impact on China operations.
Adhere to new, and prepare for emerging, global regulations on supply chains to demonstrate transparency to the greatest extent possible, and to determine levels of exposure to current and potential sanctions.
Invest and participate more in government advocacy efforts through chambers of commerce, industry associations and standard-setting bodies.