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The View
Opinion
Amiad Kushner
Andrew Frank
Amiad KushnerandAndrew Frank

The View | Chinese companies can survive in the US, even if the odds seem stacked against them. Just look to Japan

  • Amiad Kushner and Andrew Frank say Chinese companies planning to go to the US need to anticipate public perceptions and media narratives around their actions. They could study Japan Inc, which has undertaken a successful image makeover

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An attendee walks past the Huawei booth at CES 2019, the world's largest annual consumer technology trade show, in Las Vegas on January 8. Photo: AFP
For Chinese companies planning to do or doing business in the United States, the climate looks rather bleak. A slew of high-profile accusations of intellectual property and data theft against Chinese entities, along with FBI director Christopher Wray’s pronouncement that “no country poses a broader, more severe long-term threat to our nation’s economy and cyber infrastructure than China”, have further eroded a business environment already affected by tariffs, an overhaul of the Committee on Foreign Investment in the US (CFIUS) aimed at Chinese firms, and nationalist politics on both sides.

But this does not mean Chinese companies can no longer do business in the US.

In the 1980s, anti-Japanese sentiment spread through the US, where workers resented losing jobs to Japanese auto manufacturers. In response, Japanese companies opened plants in American cities and hired American workers. They partnered with American companies and shared manufacturing techniques, and they invested in local communities through grants and charitable donations.

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Indeed, improving American communities is a tradition that Japanese companies continue today through a range of conservation, education and safety programmes. More than half of America’s top 20 bestselling cars are now Japanese, illustrating the success of this integrated business and public relations approach. Chinese companies can similarly prepare for a new legal and political paradigm in the US, even as agencies throughout the US government tweak their approaches to China.

A worker dusts a Nissan Rogue, one of the bestselling cars in the US, at an auto show in Detroit. Photo: Reuters
A worker dusts a Nissan Rogue, one of the bestselling cars in the US, at an auto show in Detroit. Photo: Reuters
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For example, the US has tightened export controls with the apparent purpose of restricting China’s access to emerging, sensitive and critical technologies. In the case of Fujian Jinhua Integrated Circuit, the Chinese state-owned company was banned from buying American components, then indicted for allegedly stealing trade secrets from an American semiconductor maker.
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