US-China Relations: A Potentially Nasty Final Confrontation?

If you are involved in US-China trade, investment, science and technology, research, education, tourism or any other bilateral businesses, you are facing the biggest potential crisis of your lifetime.

Our clients and colleagues tell us that US-China relations are a major concern.

Business media and the markets are sending mixed signals. And there are few experienced people willing to talk about and manage the issues that affect businesses most.

Tantalus expert George Liu is offering tailored one-day seminars for business leaders to help manage the ongoing volatility of US-China relations.

So, if you would like to understand…

• why did the trade war happen, as seen by both Americans and Chinese;
• what caused the fundamental change of the American attitude;
• why did the Chinese do what they did – understand the deeply rooted and shared Chinese archetype, or cultural code/DNA;
• what is the new approach of the U.S. that is driving Trump’s thinking;
• what goals are both countries are trying to achieve respectively;

And more importantly…

• what to do if either government forces you to take sides as the trade war escalates (Trump is already calling for “economic patriotism”);
• how do you adapt your positioning, strategy and key messages during the trade war… just like adjusting your sail so that your boat won’t stall against the headwind;
• how to communicate to your staff, both Chinese and American, so that they feel safe, have confidence in the business and know what the future has in store for them. This is also a very emotional time… you either make friends or enemies. Chinese working for U.S. companies and Americans working for Chinese companies may also feel extremely uneasy and confused at this time. How would you explain the trade war to them, so that you can prevent a major brain drain, especially people from the other country;
• how do you communicate publicly to the media, your customers, business partners and the community you operate in, so that you can be regarded as a constructive force and be able to keep the relationships through difficult times?

Take the first step to understanding these world-changing dynamics.
Gain the expert insight you need to survive or thrive in uncertain times. 

Contact our US-China Relations expert George Liu or Tantalus President Wylie Rogers to start the conversation about tailored seminars and expert counsel on US-China trade relations and the US-China trade war.

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Tantalus’ take on the significance of the US-China Trade War

President Trump has just announced a 10% tariff hike for another $300 billion imports from China (August 2, 2019). An all-out and protracted US-China trade war would threaten not only the two countries involved but also the rest of the world. 

The Washington Post calls the US-China Trade War “Cold War 2.0” while China’s national TV station has vowed that China, with “5,000 years of experience” under its belt, “will fight to the end”. 

China is digging in for a potentially nasty final confrontation, and the U.S. continues to poke the Panda with a series of economic, social and political attacks.

Graham Allison, a professor at the John F. Kennedy School of Government at Harvard, reminds us of one of history’s deadliest patterns. The Thucydides Trap says that there have been 16 cases in the last 500 years where a rising power challenged the supremacy of a ruling one. 

Twelve of those ended in bloody wars.

With “5,000 years of experience” under its belt, (China) “will fight to the end”. China Central Television

10 Major Industries Targeted to Challenge American Supremacy

As the world’s second largest economy, China is openly challenging American supremacy across 10 major industries with its “Made in China 2025” initiative, launched in 2015 but later dialed back because of the backlash it had generated in the U.S.

The US is retaliating like never before, an escalation that could easily lead to military confrontation and, in the worst case scenario, World War III led by two major nuclear powers.

Many American and Chinese businesses are deeply intertwined across the Pacific. Their leaders are acutely aware of some of the problems that led to trade war, but most are still watching in abject horror without changing course on their business strategy.

Externally, these leaders express hope a trade deal can be reached. But internally, they recognize that this is not merely a trade dispute, nor a Presidential tantrum.

US-China Relations – A Fundamental Change in Attitudes Toward China

It’s something much bigger, deeper and non-negotiable. It has caused a fundamental change in American attitudes towards China. 

This is dramatic. It’s a change from deep within both corporate and labor, liberal and conservative think tanks, as well as with China’s best friends and advocates in America.

This means U.S.-China relations will likely continue along a rocky path, regardless of whether or not President Trump is re-elected in 2020.

The impact of the trade war is significant.

• China’s GDP slumped to a 30-year low in Q2 of 2019.
• China’s investment in the US dropped 80% in 2018 from 2016.
• American businesses are scrambling to move their supply chains out of China, looking to Vietnam and elsewhere.
• A recent economic report show that little manufacturing has returned to the U.S.

Take the first step to understanding these world-changing dynamics.
Gain the expert insight you need to survive or thrive in uncertain times. 

Contact our US-China Relations expert George Liu or Tantalus President Wylie Rogers to start the conversation about tailored seminars and expert counsel on US-China trade relations and the US-China trade war.

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About the author and seminar leader – Tantalus’ US-China relations expert George Liu

George Liu is a leading US-China relations expert. He’s lived and worked in China, the US and Hong Kong to support major multinationals like The Boeing Company for over thirty years. George has worked as a journalist, with global agencies and multinational companies. Cross-cultural or international opportunities, global trade risk management, partnerships and business co-creation projects are particular areas of strength.

George is committed to sharing his experience and expertise to educate executives on the intricacies and risks of the US-China Trade war. Contact George to plan your US-China relations seminar.