The stakes and rivalries between the U.S. and China were on full display in Washington on Thursday. American leaders welcomed Beijing rival India, now the world’s most populous nation, through a warm reception for its Prime Minister Narendra Modi.Copyright 2011 AP. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
U.S. companies facing decisions about their supply chains can look to Apple for insights into recent changes, Roach said. The iPhone giant in the past relied heavily on China. Now, Roach noted, it’s starting to tap India, Vietnam and other nations for what is currently a relatively limited portion of its offshore production.“U.S. companies and investors need to take that example as important in guiding their own choices in making what has been a pretty solid bet on China,” he said.
U.S. companies are also likely to face more restrictions from Washington on putting money into China. “It’s going to be a much more contentious environment for cross- border investment,” Roach predicted.Of late there are “very strong rumors that the Biden administration is about to issue new regulations on outbound U.S. direct investment in China,” Roach said. If so, China will likely “go tit for tat” in response.