Major World Companies Should Have A ‘China Contingency Plan’

On February 25th, former U.S. Under Secretary of State Keith Krach released a video saying that major companies need to prepare for a major blow up with communist China, and the impact will be bigger than Russia’s invasion of Ukraine. In 2022, when Putin invaded Ukraine, 300 top Western companies frantically curtailed their Russian operations, losing hundreds of billions of dollars. Currently, the risks of doing business in Communist China are at least 10 to 20 times higher than in Russia. The Chinese Communist Party (CCP) is a huge threat not only to democracy and freedom but also to businesses in the West. Corporate board members should all ask their CEOs to develop a “China contingency plan, ” as the “China risk mitigation plan is not a drill.” The world’s largest companies must be prepared now. Once war breaks out, if they are not ready, it will be difficult to recover. Doing business with the Chinese regime and for the CCP or in Communist China now represents a huge risk and board members understand that they have a responsibility to mitigate significant risks for shareholders. However, when the dreaded event has become inevitable, plans must be made and executed. Communist China is the totalitarian twin of Russia, and the closest military and economic ally. Both regimes are notorious for bullying, internal oppression, coercive economy and human rights violations. Technology giant companies controlled by the CCP, such as Huawei, Alibaba, Tencent and Xiaomi, are still doing business normally in Russia.