Many U.S. Companies Plan to Keep China Ties, Survey Finds

David Fagan’s commentary was included in an article appearing in The Wall Street Journal detailing the U.S. business community’s approach to Washington’s overtures to encourage economic decoupling from China. David discusses a report he coauthored that was commissioned by the U.S. Chamber of Commerce Foundation, which showed that many of the roughly 200 American companies surveyed in the past number of years plan to maintain or increase their ties with China.

At the same time, the report shows that most of the companies, ranging from small businesses to multinational firms, also identify China as their No. 1 source of geopolitical risk, followed by Russia. The report is based on research and surveys before recent trade talks between the Trump administration and Beijing.

Among its findings, the report recommends that companies with ties to China set up a geopolitical or China risk-management committee reporting to the CEO, board or investment committee. Such a committee, it says, should gather information inputs on China’s legal and regulatory landscape and business exposure.

“We’re arming businesses to make better decisions as risks escalate,” said David. “Companies need to integrate national security into their decision-making to help reduce their vulnerability to exploitation by China.”