Why do some U.S. companies that rely significantly on China for revenues continue to stay and plan further investments there? The answer is a balancing act between potential risks and rewards.
The decision to stay or exit must be evaluated on a sector-by-sector basis, taking into account timing and potential future upsides and risks.
Yet, the trend is clear — more companies are seeking to reduce their dependence on China.
I now say this – consider India. Indian government and businesses are united in their goal of eliminating economic dependence on China. This is reflected in their boardroom decisions and government resource allocations.
The main takeaway for any business — stay vigilant!