Some companies operating in mainland China, especially in the technology sector, are considering spinning off their local divisions and separating from their entire businesses in response to the U.S.-China geopolitical tug-of-war, according to Roland Berger, a consulting firm.
Dai Pu, Roland Berger’s mainland president and executive director, said that tensions between the U.S. and China have led to various bans and sanctions, and that senior executives of companies affected by these events, whether land-based or foreign, have raised the idea of spinning off their mainland divisions in board meetings, even though they don’t expect it to end up that way.
In an interview on the sidelines of the Boao Forum, Dai Pu said, “If you are a wise business leader, you will be strategically prepared for the future actions that may have to be taken.”
Diep declined to say which clients were planning to spin off their mainland divisions, but he said certain technology players had “carefully considered” the option. If companies are forced to choose sides between the U.S. and China, he said, it would be a “lose-lose” situation.
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