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

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CEOs have a lot to lose. 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.and a benign geopolitical environment between the U.S. and China, this short-termism proved viable for many companies.

There's a limited window available for foreign businesses in China's market to de-risk in a way that protects their shareholders' interests. Timing a company's presence to seek maximum gains while not overstaying your welcome is a delicate balance for China and includes a grave risk: misjudge the political and economic environment and a company may be displaced by a domestic Chinese competitor.

 

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