Key Facts
The Pressure Is On
China’s top diplomat has publicly stated that trade opportunities and other profitable investments are dependent on American businesses remaining silent on issues like the independence of Tibet or Taiwan, the genocide of Uyghur Muslims in Xinjiang, and the recent crackdown on pro-democracy dissent in Hong Kong.
Choosing Sides
American businesses and politicians must accept that the situation in China has changed over the past few years: while previously businesses could avoid picking sides, mounting issues between our two nations mean it will be increasingly difficult to please both Washington and Beijing.
American Response
In light of increased tensions, corporations should have second thoughts about concentrating their operations in an autocratically ruled country. Diversifying their supply chains will thus be key to mitigating the risks of a belligerent China. America and its allies must always consider whether our actions increase our leverage over a hostile dictatorship in Beijing. The western world still maintains considerable leverage over China, and it must remain that way.