As you all now, 2020 has been a milestone for China which emerged from the pandemic both stronger and more confident. The momentous shifts will positively impact China and its global status for years to come, and lays the basis for the country’s growth over the next decade. In the article we look at the basic trends, the increasing influence of politics on the business environment, the shift to domestic consumption and industrial growth and, most importantly, the tremendous impact this will have on foreign companies in China. While China’s potential is actually increasing, and while the business environment for foreign companies  is actually improving, the challenges for foreign companies have never been bigger. Without scale in China and without being ‘local’, foreign companies will struggle to remain relevant, and will therefore face stark choices, as we describe in the article. We hope you will enjoy this article and welcome any comments.

Author: Jan Borgonjon