The allure of the Chinese market is nigh irresistible.
The world’s second largest economy has over 400 million middle-class consumers and a growing number of rich and ultrarich citizens ready to spend on top-class goods and services. Businesses have long sought to take advantage of its relatively cheap labor (although wages are rising) and the ability of Chinese producers to quickly retool production lines to accommodate shifting demand.
Those opportunities made the business community one of the most powerful advocates for engaging with China, keeping doors open and maintaining ties even as political issues cloud Beijing’s relations with the West. Yet, the ruling Chinese Communist Party seems intent on alienating those allies with policies that show skepticism, if not outright hostility, to them. As U.S. Commerce Secretary Gina Raimondo warned during her August visit to China, many of those companies complain that the country has become an impossible place to invest.