Tag: Conflict with China

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Coming Conflict with China-Business Challenges and Responses: Export Issues and Rebalancing the Global Economy

In the short span of the 21st Century, the world’s two top powers, the United States and China, have moved inexplicably toward a showdown. This evolved from a commercial competition into something more akin to permanent non-kinetic warfare. What does this mean for US business doing business in and with China? For this special 5-part blog post series, I visited with Brandon Daniels, CEO and President of Exiger, to explore issues diverse as a real danger, supply chain, exports, cyber-attacks, and IP theft from the business perspective and give the compliance and business executive their viewpoints on what you can do to not only prepare your company but protect it as well. In Part III, we consider export issues of US companies and rebalancing the global economy.

The US exported $149,000,000,000 to China in 2021, but do trade deficits still matter in this new era of economic conflict? The US-China conflict is intensifying, and as a result, businesses that export to China are feeling the strain. What happens when your biggest customer isno longer available? How do you go about finding new markets and reshoring customers? In this post, we explore the delicate balance between US and Chinese relations and the tools US businesses need to protect their intellectual property and commodities from Chinese counterfeiting.

What are some of the steps you can take around export issues.:

  1. Determine what to buy and sell to China
  2. Protect intellectual property
  3. Create a rebalanced global economy through diplomatic efforts with allies and partners.

  1. Determine what to buy and sell to China

When considering the purchase and sale of goods to and from China, it is important to take into account the potential risks and rewards associated with the transaction. There are several factors to consider when assessing the potential for a successful trade relationship with China. First, companies must consider the intellectual property rights associated with the goods being purchased or sold. It is important to ensure that any goods being exported to China are not subject to an export control classification, as China does not always respect intellectual property laws. There is a large counterfeit market in China, and companies must be aware of the potential for counterfeiting of their products. Finally, companies should be aware of the imbalance in trade between the United States and China, and must be sure to protect their economic interests while also respecting the rights of their customers. By taking into account these factors and ensuring that their business practices are in line with their countries’ trade policies, companies can form successful and mutually beneficial trade relationships with China.

  1. Protect intellectual property

Protecting intellectual property is essential to maintain the success of businesses and to prevent the theft or misuse of valuable information. Companies should take steps to ensure that their intellectual property is secure, both internally and externally. Internally, companies should create policies and procedures to ensure that only authorized personnel have access to sensitive information, and that all data is kept secure. Companies should also implement safeguards such as encryption and firewalls to protect their data. Externally, companies should take steps to protect their intellectual property from being copied or stolen. This could include applying for patents or trademarking products or services. Companies should also investigate the laws and regulations in the countries they are exporting to and ensure that their intellectual property is adequately protected under those laws. In addition, companies should consider signing contracts with their partners that protect their intellectual property, and should take steps to monitor the use of their intellectual property to ensure that it is not being misused.

  1. Creating a rebalanced global economy

To create a rebalanced global economy through diplomatic efforts between the US, its allies and partners, it is important to start by forming a coalition of like-minded countries. This coalition should focus on building up and sustaining economic ties between each other, as well as banding together to develop new economic opportunities and innovations. The US should also work closely with their allies and partners to protect their intellectual property, enhance transparency, and prevent China from taking advantage of any economic imbalances.

To ensure a successful rebalancing of the global economy, the US and its allies should focus on developing diplomatic solutions to their problems with China. This means engaging in dialogue with them, negotiating trade agreements, and forming coalitions of like-minded countries who are willing to work together to create a more balanced global economy. The US should focus on strengthening their own economic ties with their allies and partners, as well as developing new economic opportunities and innovations. Finally, it is important for the US and its allies to continuously monitor and protect their intellectual property, as well as increasing transparency in the global economic system. By doing so, China will be unable to take advantage of any economic imbalances.

The US-China conflict is an ever-evolving and complex situation, but by understanding the implications of the conflict, businesses can take steps to protect their intellectual property and commodities from Chinese counterfeiting, and create a rebalanced global economy through diplomatic efforts with allies and partners. With the right strategies and precautionary measures in place, businesses can remain competitive in the global marketplace and continue to engage in global commerce. With the right guidance and action, we can all strive to create a more stable and prosperous global economy.

For a deeper dive into these issues, check out the 5-part podcast series with Tom Fox and Brandon Daniels, here.

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Coming Conflict with China-Business Challenges and Responses: Supply Chain Issues

In the short span of the 21st Century, the world’s two top powers, the United States and China, have moved inexplicably toward a showdown. This evolved from a commercial competition into something more akin to permanent non-kinetic warfare. What does this mean for US business doing business in and with China? For this special 5-part blog post series, I visited with Brandon Daniels, CEO and President of Exiger, to explore issues diverse as a real danger, supply chain, exports, cyber-attacks, and IP theft from the business perspective and give the compliance and business executive their viewpoints on what you can do to not only prepare your company but protect it as well. In Part II, we consider Supply Chain issues.

Have you ever stopped to consider the human rights abuses at the root of the products you use every day? From our solar panels to our computer screens, the exploitation of the Uyghur minority in China is a painful reality that has been hidden from Western consumers for too long. How has the global supply chain issues that have been enabled by this exploitation and how the geopolitical tensions with China must be addressed if we are to ever move past this human rights violation? In this blog post, we explore the implications of the Uyghur Forced Labor Prevention Act, the COVID-19 response, and the need to diversify our supply chains away from China if we are to bring balance to the world and ensure a fair playing field for everyone.

Here are some steps you need to follow to help you to shore up issues caused by China, impacting your Supply Chain.:

  1. Take the issue of Uyghur Forced Labor Prevention Act seriously.
  2. Diversify the supply chain to reduce risk of disruption.
  3. Invest in alternative sources of supply.
  4. Consider reshoring manufacturing to places like the US, UK, etc. with relative stability and free market.
  5. Invest in US manufacturing to increase innovation and provide security.

1.The Uyghur Forced Labor Prevention Act

Taking the issue of Uyghur Forced Labor Prevention Act seriously requires a comprehensive understanding of the human rights abuses taking place in the Xinjiang region of China. This region is home to the minority Uyghur people, who are subjugated by a paramilitary organization that controls all commerce and government functions. The production of items like neon, steel, lithium, and silica relies heavily on these subjugated people, driving down the cost of goods and manipulating economic markets. This is a clear violation of human rights, and it is not justifiable from any perspective. To take the issue of Uyghur Forced Labor Prevention Act seriously, companies must recognize the implications of this human rights violation and take actionable steps to diversify their supply chains, invest in alternative sourcing, and return manufacturing to the US. Taking these steps is essential in order to create a fair playing field and combat the human rights abuses taking place in Xinjiang.

  1. Diversify your supply chain

Diversifying the supply chain is key to reducing the risk of disruption from the conflict with China. Companies should look to invest in other countries in the Asia Pacific region such as Vietnam, Malaysia, and Cambodia, who are open for business and have less stringent regulations than China. Companies should also consider reshoring, which means bringing manufacturing back to the United States or other countries with more stable free market economies. This will help limit exposure to potential disruptions due to geopolitical tensions in China. You should review your long-term supply chain strategy, to include investing in alternative sources of materials and suppliers can help ensure continuity of operations and reduce the risk of disruption. Finally, companies should consider investing in research and development to create alternative sources of goods to diversify the supply chain and limit their exposure to potential disruptions from the conflict with China.

  1. Invest in alternative sources of supply

When considering how to address the issues of human rights abuses and Supply Chain interruptions due to China, it is important to consider investing in alternative sources of supply. Mexico, Vietnam, Malaysia, and Indonesia are all countries that offer alternative sources of supply, and they are more likely to be subject to less geopolitical tensions than China. To ensure Supply Chain security and to mitigate the risk of human rights abuses, companies should consider investing in these countries. This could include establishing manufacturing plants in these countries, as well as working with local vendors to source the necessary raw materials. Additionally, companies should consider investing in research and development in these countries to develop alternative technologies that are not dependent on Chinese resources. By investing in alternative sources of supply, companies can ensure a secure and ethical supply chain, which is essential for the long-term success of any business.

  1. Consider reshoring manufacturing

When it comes to considering reshoring manufacturing to more stable and free market sites such as the US, UK, etc.; the first step is to make sure to diversify your Supply Chain. This could mean making investments in alternative suppliers to ensure that the company is not solely reliant on one given country or region. Businesses should look into the opportunities of reshoring to the US and UK to take advantage of the 525,000 underutilized manufacturers in the US. Doing this could make it more cost effective and provide an additional layer of security in the event of a conflict with China. Lastly, companies should also consider investing in local manufacturing in the Asia Pacific region, such as in Vietnam, Malaysia, and Indonesia, to take advantage of these countries’ open for business attitude. This could help to bring about innovation and balance to the world’s Supply Chains.

  1. Invest in US manufacturing

Investing in US manufacturing is the fifth step in addressing the geopolitical tensions between China and the US. This step is essential to increase innovation and provide security. US companies must take seriously the idea of “reshoring” or bringing back manufacturing to the US. There are currently 525,000 manufacturers in the US that have the potential to be utilized. To make this possible, investments must be made in order to ensure that goods can be manufactured cost-effectively and with the highest quality. This will provide stability and security in the potential conflict with China, as well as providing innovative goods that are manufactured within the US. It may take time and money to invest in US manufacturing, but the potential reward is worth it.

The issue of Uyghur Forced Labor Prevention Act is a serious one, and companies must take proactive steps to ensure that their supply chains are secure and ethical. Diversifying the supply chain is essential in order to reduce the risk of disruption due to geopolitical tensions and investing in alternative sources of supply such as Mexico, Vietnam, Malaysia, and Indonesia is a great way to do this. Companies should investigate reshoring manufacturing to places like the US and UK, as this will provide an additional layer of security and help to create a fair playing field for everyone. Finally, companies should invest in US manufacturing to increase innovation and provide security. By taking these steps, companies can help to ensure a secure and ethical supply chain and combat the human rights abuses taking place in Xinjiang. With the right mindset and actionable steps, we can all make a difference in the world and create a better future for everyone.

For a deeper dive into these issues, check out the 5-part podcast series with Tom Fox and Brandon Daniels, here.

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Coming Conflict with China-Business Challenges and Responses: From Potential Conflict to Real Danger

In the short span of the 21st Century, the world’s two top powers, the United States and China, have moved inexplicably toward a showdown. This evolved from a commercial competition into something more akin to permanent non-kinetic warfare. What does this mean for US business doing business in and with China? For this special 5-part blog post series, I visited with Brandon Daniels, CEO and President of Exiger, to explore issues diverse as a real danger, supply chain, exports, cyber-attacks, and IP theft from the business perspective and give the compliance and business executive their viewpoints on what you can do to not only prepare your company but protect it as well. In Part I, from potential conflict to real danger.

It is time to ask some tough questions and come up with robust responses to the challenges. With China’s increasing attempts to subvert the US economy, decrease transparency of its business practices, and the use of its blocking statutes that protect its companies from US laws, the situation is becoming increasingly challenging. What steps can you take to safeguard yourself and your business? Join us to explore these questions and more in this special series.

Here are the steps you should follow to begin to think your organization’s business and operational security.:

  1. Identifying potential threats and risks in the global business and commerce ecosystem.
  2. Developing a strategy to diversify the global supply chain to mitigate risks and increase security.
  3. Finding alternate sources of supply and production in different countries to create redundancy and increase diversity.

1.Identifying potential threats and risks

Identifying potential threats and risks in the global business and commerce ecosystem requires an understanding of how geopolitical tensions and economic coercion can impact businesses and markets. When looking at the arrests of Mintz’s Group employees in Beijing and the potential for China to subvert our global free market, it is important to consider how Chinese investments in critical technologies, like battery plants, and their control of resources, like cobalt and copper, could be used to manipulate the market. It is also important to be aware of China’s attempts to restrict access to economic policies, like tariffs, that make it cheaper to manufacture in China than in Vietnam or Malaysia. It is important to consider the impact of China’s annexing of other countries, their blocking statutes, and their potential to use Uighur forced labor in their garment industry, all of which could lead to human rights issues. By understanding the potential threats and risks, businesses can be better prepared to put appropriate measures in place to protect their data, their people, and their customers.

  1. Developing a strategy to diversify your global supply chain 

Developing a strategy to diversify the global supply chain to mitigate risks and increase security is a crucial step in mitigating potential risks associated with China’s increasing adversarial activity. To ensure the safety and security of a company’s supply chain, it is important to diversify its sources of supply, especially for critical infrastructure such as logic bearing circuitry and pharmaceutical ingredients. Your organization should think twice before accepting a cheap bid from a Chinese company and instead diversifying to sources from countries such as Japan, South Korea, the United Kingdom, and the United States. By diversifying supply chain sources, companies can ensure that they are not over-dependent on any one country, and can also take advantage of premium pricing that comes with diversity, security and redundancy in their commerce.

  1. Finding alternate sources of supply and production

Finding alternate sources of supply and production in different countries to create redundancy and increase diversity is an important step in mitigating risk in a highly unpredictable geopolitical environment. To do this, you should start by looking into local manufacturing capabilities and taking the opportunity to support companies from other countries, such as Japan, Korea, the UK, the US, Mexico, and Canada. These countries may be more reliable in their political stability and may offer a premium for the security that comes with diversity. Additionally, it is important to investigate the state of the industries in these countries and what investments they are making. For example, Japan is investing heavily in their electronics sector, Korea in semiconductors, and the US and Canada in AI. To ensure your business is protected, you should also consider investing in a backup plan in case of disruption from your current source. This could involve researching other suppliers, negotiating contracts with them, and training staff and operations to use them. By investing in these alternate sources and plans, you will be able to create redundancy and increase diversity in your supply chain, ultimately making your business more secure.

The importance of identifying potential threats and risks in the global business and commerce ecosystem and developing a strategy to diversify the global supply chain to mitigate risks and increase security cannot be overstated. You should be working to find alternate sources of supply in different countries to create redundancy and increase diversity. By taking the necessary steps to understand the potential risks of doing business with China, businesses can be better prepared to protect their data, their people, and their customers. Opaqueness is the foe of transparency.  With the right knowledge and strategy, you too can ensure the safety and security of your business.

For a deeper dive into these issues, check out the 5-part podcast series with Tom Fox and Brandon Daniels, here.