Executive Summary

Companies whose value chains depend on China now face increased political risk. Chinese suppliers and their sub-contractors are susceptible to pressure to behave ‘patriotically’ when authorities convey the message, however tacitly, that lack of cooperation with foreign multinationals is in the national interest. Companies need to take urgent steps to measure their potential exposure. Doubling up value chains, including alternatives outside China, would mitigate the risk of political and regulatory disruption. (It would also have the added benefit of…

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