China’s Wake-Up Call for CEOs…in Time of US Tariffs!

Link: China’s Wake-Up Call for CEOs…in Time of US Tariffs!

By Emmanuel Hemmerlé, 10 April 2025

In recent weeks, I’ve watched CEOs from top Western companies across industries visit China. The word from their teams on the ground is unanimous: they’re impressed. Very impressed. They’ve seen the transformation of the Chinese economy, its scale, its upgrades, and the new potential it unlocks. Even more striking, they’ve met central government officials and municipal leaders whose sophistication, global knowledge, and strategic clarity caught them off guard.

For those of us who’ve been here long-term, this isn’t surprising. I’ve been telling clients about China’s strengths for years. But these CEOs’ reactions reveal how much they’ve been swayed by some Western mainstream media narrative that’s painted China as a caricature, dangerous, backward, or closed off.

During Covid, I heard global executives say China was becoming North Korea or sliding back to Mao times. Some refused roles here, citing human rights fears or danger to foreigners. Even in the years post-Covid and until recently, some Western global leaders cut China investments, diverting resources to the US, convinced China was too risky. That view was built on selective reporting, exaggerated risks, and political spin, not the full reality I’ve seen on the ground.

Now, with US tariffs shifting the calculus, these leaders are reconsidering. They’re finding China is not only safe and stable to live in, it is a great place to do business, relatively predictable, fast-evolving, and rewarding if you play it right. For China, this is a golden chance to sharpen its appeal to global firms, beyond just Western, if it stays open and engaged. But there’s a catch: China doesn’t work with a stop-and-go approach. Disinvest opportunistically, and it’s tough to come back. Brands especially need to stay engaged with their audiences. Consistency is key.

China rewards loyalty. And the best investment isn’t just in infrastructure. It’s in people. Don’t cut corners when hiring here. Go for the best executives. It’s the shrewdest move you can make, limiting downside, maximizing upside. Vision and commitment pay off.

While some CEOs are seeing a China they didn’t expect or had missed, others knew it all along. The visionary ones will stay. For the long run.

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