The scenery made in China is no longer Chinese enterprises also want to “de-sinicize”

[January 06, 2023](Comprehensive report by Epoch Times reporter Chen Ting) The United States and China continue to decouple, and the technological war between the two countries is also intensifying. “Made in China” has become a signboard that has aroused disgust in the international market and regulatory scrutiny. In this sentiment,Chinese enterprisesalso appear “de-sinicization“the trend of.

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According to the South China Morning Post (Link),More and moreChinese enterprisesTrying to “foreignize” their image and business in order to remain competitive in international markets.

A public relations manager of a multinational company, who did not want to be named, said the company’s profile stated that it had “operational headquarters” in the United States, Europe and another Asian country, but did not mention Shenzhen, although its official website listed Shenzhen as “headquarters”. ” in the list.

The manager also said the company also plans to move production out of China.

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The company is not the only case. Another Chinese company with operations in the United States also said that their goal now is to keep a low profile as much as possible, trying to deal with new restrictions and political disputes.

In recent years, the internationalthe cpcThe distrust of the regime has affected people’s perception of Chinese companies. Because under the CCP’s “military-civilian integration strategy”, many private companies are in fact within easy reach of the CCP’s infiltration targets, and Beijing has used this to steal a large amount of intellectual property. Many strategy experts have called on the U.S. government to pursue more initiatives to reduce dependence on China and further decouple strategic industrial sectors from the Chinese economy.

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After the outbreak of the Russo-Ukraine war, the close relationship between China and Russia has also caused the United States and many other developed economies to have a sharp increase in the proportion of negative views on China (the CCP). According to a survey by the Pew Research Center last year, 82% of Americans hold a negative view of China, a record high.

This negative sentiment has affected Chinese companies in the United States. Experts said this has put some multinational Chinese companies on thede-sinicization“, trying to “duck and cover” their relationship with China.

Chris Pereira of the North American Ecosystem Institute, a New York-based consultancy, said that in the current climate of tension, any company labeled as “Chinese” could be very dangerous”.

“The Chinese label can link companies to geopolitics,” Pereira said. “We see a major growth trend among Chinese companies, and their goal is to ‘de-China’ (de-China) so that their image and business localization” in order to improve the chances of survival and reduce regulatory risk.

Some controversial Chinese companies are also trying to move their headquarters out of China, hoping to reduce damage.

For example, Chinese fast fashion company SHEIN has moved its assets and headquarters to Singapore at the end of 2021 after facing numerous plagiarism allegations, health and human rights disputes. SHEIN founder and CEO Chris Xu has also become a permanent resident of Singapore and has reportedly applied for citizenship.

Distrust of the CCP is the consensus of the two U.S. governments, Trump (Trump) and Biden. In 2022, the Biden administration will promote “friendly shore outsourcing” and pass the “Chip Act”, which aims to transfer the supply chain back to the country or a friendly country to compete and contend with the CCP.

In this atmosphere, Pereira pointed out that many Chinese companies are now trying to position themselves as “from Hong Kong, Singapore, or even New York, while having official headquarters in China.”

Shau ​​Zhang of Ernst & Young’s China Overseas Investment Department said Chinese companies “have no choice but to localize everything”.

However, she said, Chinese companies operating in the United States still have not localized their executives. She pointed out that more than 90% of the “C-suite staff” of Korean and Japanese companies have been localized.

However, Ilaria Mazzocco of the Center for Strategic and International Studies (CSIS) in Washington pointed out that it will still be important to determine whether this decoupling is just a rebranding, or if these companies are really trying to create new supply chains.

For example, some Chinese solar panel manufacturers are assembling products in Southeast Asian countries, but this “relocation” is mainly just to avoid tariffs.

A Chinese company “may diversify some assets or image,” she said, but it’s not easy to actually become a foreign company because “in many cases, their entire business model is based on the cost savings of manufacturing in China.” “.

Responsible Editor: Ye Ziwei#