The biggest market race of all Western companies are at risk of losing to China: Op-ed

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The era of doing business in China as Western companies once knew it has fundamentally ended.

China’s leaders are meeting in Beijing on Tuesday for a second day to search for ways to stabilize the country’s current economy while keeping its focus on plans to turn toward a more sustainable and self-reliant growth model.

There is a long history of CEOs chasing short-term profits, giving precedence to quarterly earnings objectives and share prices, at the cost of establishing a sustainable long-term approach. In an era defined by profound global transformations, it's remarkable that many CEOs continue to let this approach dictate their China strategy.

For many years, the prevailing theory has been that China is too big to ignore and that, at any rate, China would necessarily hew to a pragmatic and prudent policy course so as not to jeopardize its continued access to foreign investment, U.S. capital markets, and foreign innovation and know-how. However, the inconvenient truth is that China has long understood its own vulnerabilities at home and abroad.

The allure of China's vast population and economic strength can be misleading, as not all Chinese consumers seek or can afford foreign products, and Chinese companies often provide comparable alternatives. Today, industry leaders such as. These examples underscore the risk of underestimating the complexities of the Chinese market and losing ground to local competitors over time.

 

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