, rejecting the idea of severing all economic ties with China in favor of a more nuanced approach that would not cut off trade but protect sensitive areas, such as military technology – the doctrine of "small yard and high fence."
With the new Chinese espionage law, for example, U.S. companies will have to contract out work such as competitor analysis and geospatial information because it might be too dangerous to do it in-house, the former diplomat said. But there are limits to how much they can de-risk. Companies are reworking supply chains to build redundancies and avoid single points of failure, but their dependence is so deep that they are unable to move entirely out of China, executives said.
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