Derisking China

I’ve read a lot poor takes on the Chinese economy as of late so here’s another note clarifying yet another topic: the new business environment in China is increasingly defined by efforts to “derisk” or minimize geopolitical risks. Since China’s reopening in 2023, multinational corporations are adopting a strategy that balances reducing global dependence on China while simultaneously localizing operations to serve its vast domestic market. This evolving “diversify and localize” approach is emerging as a safeguard against external pressures and geopolitical turbulence, specifically targeting supply chains.

Supply Chain Dynamics and Derisking