International businesses in China struggle to comply with new regulations, which force them to store critical data within China's borders, limit the application of foreign encryption services, and require handing over customer data of terror suspects.
China sets its hopes on e-mobility. Smart and forceful industrial policies are geared toward grooming domestic brands and keeping foreign competition at bay. Governments and manufacturers in industrial countries will have to act fast to counter this trend.
China’s industrial policies aim to build national champions via acquiring technological knowledge abroad. This goal may be in line with the current worldwide wave of economic nationalism, but it is likely to collide with the strategic aims of increasingly globalized Chinese companies.
As China imposes tighter controls on capital outflows, China’s global M&A activities may decelerate. However, German companies are likely to remain attractive targets for Chinese buyers for strategic, geopolitical, and business reasons.
The world's current leaders in advanced manufacturing must prepare for growing competition and ensure that China’s industrial upgrade doesn’t come at their expense, the authors of a new MERICS Paper on China argue in an article for our partner publication The Diplomat.