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U.S. companies in China face greater scrutiny and risk as relations sour

August 27, 2020 Article 1 min read
Authors:
Lou Longo
U.S. firms in China are receiving increased bureaucratic attention as relations between the two countries crumble. Lou Longo explains in IndustryWeek the steps businesses should take now to address new vulnerabilities amid heightened risk.
Woman standing in an all glass office, looking out to the city

Officials recently showed up at the Chinese plant of a U.S. company to perform a spot inspection of its fire preparedness. They fined the plant after finding a minor issue with its extinguishers and warned the manager they’d be back. It was the first time it had happened in the company’s 15 years in China.

This type of bureaucratic attention to U.S. firms in China is on the rise, and it highlights the convergence of two major risks for companies with operations or suppliers there.

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