The U.S. magazine Supply Chain Management Review said in a June 21 article that global polarization along with U.S.-China tensions are driving countries around the world to determine whether they should be "pro-U.S." or "pro-China". Powerful countries are divided into categories of visibility. For multinational corporations caught in the middle, a polarized world means that "Made in America" will struggle in China and "Made in China" will not sell in the United States. But multinationals cannot afford these costs. Instead, they must find ways to take control of what appears to be a new Cold War.
The energy behind the push for the US and China to go their separate ways is growing. Along with increased competition in the marketplace, the U.S. is struggling to implement development strategies that work to change the economic landscape in which China finds itself. In addition, China is pushing back against the U.S., investing heavily in projects to reduce its dependence on key foreign technologies and new energy sources.
Masses in Shanghai in June got hold of information about Tesla Motors vehicles. Some multinationals ask: Is it time to pull out of China yet? The answer is a resounding "no". Multinationals leaving China are missing out on the world's second-largest economy, which includes 800 million middle-class customers and nearly 20 percent of the world's GDP. the potential reach of China encompasses more than half of the world's population, and pulling out of the country could cause the region to become a "minefield" for European and American companies. In turn, multinational corporations should follow the example of Chinese companies and find ways to mitigate the risks of the international situation. In order to avoid a linkage between the U.S. and China's economic development, multinationals need to maintain their presence not only in China, but also within the U.S. borders.
Gilliman, a former chairman of the American Chamber of Commerce in China, said, "We all seem to be moving toward a dual-track global perspective, but that's not going to be a reality in the context of what's going on." The world's nations will make their respective determinations based on "what they can get out of a U.S.-centered or China-centered world," and "no country wants to give up on one or the other."
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