The US is the master strategist, no matter how long you look at how the crash was forged or its consequences, and if not, there we have the case of how it mediated between Taiwan and China itself, which currently governs a large part of semiconductors , chips and world geopolitics. They say that the US always wins, and in this case it seems that they do it again, since they are getting the call Des-China effect. What exactly do they mean?
Times have changed and deglobalization is also giving rise to the Des-China effect. Tensions are increasing and many companies and entrepreneurs see who is going to win the war and where the real market is. But… China is more than twice as big in market as the US, why are Chinese businessmen looking at the wolf’s ears? Well, the answer, precisely, comes from China itself.
USA will win once again, Des-China effect begins
The Chinese, regardless of where they live, will always be Chinese, and this is not obvious, because the one who emigrates will feel like such, but their children, their grandchildren, their great-grandchildren will also feel Chinese. They’re a close culture with their own and independent with the rest As a general rule, and although they are related, as happens with the youngest, the feeling of belonging is instilled from birth, it is almost ideological.
But although this is true in the vast majority of cases, “business is business”, and there many businessmen are seeing that China will not win the game against the US. For this reason, they want to migrate their company headquarters to the United States, obtain permanent nationality or at least that of a foreigner with a green card, so that the restrictions and damages against China do not affect them.
This is having a devastating background and many businessmen have cried out loud. Most of those interviewed by REUTERS did not want to give their real names, but there are very striking cases that show this particular situation in Des-China. And they all have something in common: they want to remove the headquarters of their companies from ChinaAnd because of that, They fear reprisals from the government.
Chinese tech companies want to move to the US, want to be “less Chinese”
Under a false name, Ryan claims that his company already has a million users in East Asia and a strong base in the Americas, but is being hurt by the tensions and restrictions between the two countries, which others, such as Europe, do not:
“It’s so unfair, we’re a lot like stuffing sandwiched in the middle of a cookie”
Seven more businessmen shed some light on the matter. In any case, they are all trying to obtain residence for the reasons discussed. Of the seven, three agreed to be identified, the rest wanted complete anonymity for themselves and their companies. When did this phenomenon start? Well, it was as a result of Xi Jinping’s anti-COVID policies. After the opening of China, things have not improved for companies, that is, there are no excuses for the virus anymore, and everything is getting more complicated for companies in that country.
One of the businessmen commented that, indeed, everything changed with the pandemic, although it is not impossible to do business from China, restrictions and fear of reprisals curtail that freedomto the point that he ensures that doing business “is easier for my employees, for my shareholders, if I am away”.
Companies of all kinds prefer to operate in the West
Another example from Des-China is Sheinthe famous online clothing store that competes with giants like zara. In technology we have similar efforts by Huawei, OPPO and even Xiaomi. They are all westernizing to be able to operate in our markets and countries, but that is implying that they have to move their headquarters, which is irritating China.
As a curiosity, all the businessmen described and who have not wanted to give their names affirm that they are not convinced by the supposed support that Beijing offers thembut instead, they were concerned about the loss of civic liberties. And it is that, it seems, the largest and most ambitious companies must have strong ties with the Chinese Communist Party, which means following guidelines and setting limits. Companies that do not comply are trying to do the Des-China effect, others, instead, directly close to open offices outside their countryif they can…
Will we see more semiconductor tech companies take a similar path? We’ll see as the years go by, but it looks like the US will win once again if Xi Jinping doesn’t stop it, or can he do something?