Don’t Be Distracted by the Trade War. Here’s What Should Inform Your China Strategy Instead.
While U.S.–China trade tensions have drawn intense attention, business leaders who focus too narrowly on tariffs risk missing a deeper, longer-term shift. China’s economic strategy—centered on reducing dependence on foreign firms, building domestic dominance, and translating that into global competitiveness—has quietly and steadily progressed. Its “Made in China 2025” agenda has succeeded in most targeted sectors, creating a domestic profit base and challenging foreign market share. But global competitiveness has lagged in some areas due to limited international leadership experience and structural barriers abroad. For executives, the takeaway is clear: don’t mistake momentary trade flare-ups for the main story. Instead, understand China’s enduring objectives, anticipate continued decoupling pressures, and craft long-range strategies that go beyond policy reaction—diversifying supply chains, stress-testing assumptions, and influencing key regulatory landscapes before the next eruption hits.
