🌍 As Ties to China Turn Toxic, Even Chinese Companies Are Breaking Them 🚫🇨🇳
Companies dey move headquarters and factories waka commot from di kontri and dem dey cut demselves from dia Chinese businesses. E no too clear if di strategy go work.
As Shein, di fashion app wey dey grow fast fast, dey expand go oda countries, dem begin cut dia relationship with di kontri wey dem call house, China. Dem waka carry dia headquarters go Singapore and dem cancel dia original company for Nanjing. Dem establish dia operations for Ireland and Indiana, and dem employ Washington lobbyists to shout about dia expansion plans for United States as dem dey prepare for potential initial public offering dis year.
But e no be small di focus wey dey on top Shein relationship with China. Alongside oda brands like di viral social app TikTok and shopping app Temu, Shein don become target for American politicians from both parties. Dem dey accuse di company say dem dey use fabric wey dem make with forced labor, and dem dey call am tool wey Chinese Communist Party dey use ─ claims wey Shein dey deny.
🗣️ “No be everybody wey go fit fall for di way wey Shein dey hide,” Senator Marco Rubio, Republican from Florida, write for one letter wey im send give oda lawmakers dis month.
As di relationship between United States and China dey spoil, some of China’s enterprising brands don take action to distance demselves from dia kontri. Dem don establish new factories and headquarters outside China wey go serve United States and oda foreign markets. Dem dey emphasize on top dia foreign relationship and dem don delete any mention of “China” from dia corporate websites.
TikTok don set up headquarters for Los Angeles and Singapore, and dem don invest for new U.S. operations wey dem talk say go separate dia American user data from dia parent company, ByteDance. Temu don establish headquarters for Boston, and dia parent company, PDD Holdings, don move dia headquarters from China go Ireland.
Chinese solar companies don set up factories outside China to avoid di tariffs wey United States dey put on top solar panels from China and to reduce dia exposure to Xinjiang, one region wey United States don ban import from sake of use of forced labor.
JinkoSolar, one big company wey dey produce one in every 10 solar modules wey dem dey install globally, don establish supply chain wey completely outside China so dem fit produce goods for United States.
Oda companies, even those wey no be Chinese-owned, dey build wall between dia Chinese operations and dia global businesses. Dem believe say na di best way to avoid wahala from di new restrictions and any risk wey go spoil dia reputation.
Sequoia Capital, di venture capital firm, don yan say dem go divide dia global business into three separate partnerships, dem go create unique entities for China and India.
Shein talk for one statement say dem na “multinational company wey get operations wey diversify across di world and customers for 150 markets, and we dey make all business decisions with dat for mind.” Dem talk say dem no gree to use forced labor, dem no dey source cotton from Xinjiang, and dem dey obey all U.S. tax and trade laws.
One spokesperson for TikTok talk say Chinese Communist Party no get direct or indirect control of ByteDance or TikTok, and say ByteDance na private, global company wey get offices for different parts of di world.
🔍 “Around 60 percent of ByteDance investors dey come from outside of China,” one person close to di company add.
While Chinese companies dey try break demselves from dia Chinese roots, e remain to see if dis strategy go fit protect dem from di growing hostility between di two superpowers.
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🌍 As Ties to China Turn Toxic, Even Chinese Companies Are Breaking Them 🚫🇨🇳
Companies are relocating their headquarters and factories away from the country, cutting ties with Chinese businesses. It’s unclear if this strategy will be successful.
Shein, the rapidly growing fashion app, is expanding into other countries while severing its relationship with its home country, China. They have moved their headquarters to Singapore and closed their original company in Nanjing. They have established operations in Ireland and Indiana and have employed Washington lobbyists to promote their expansion plans in the United States, as they prepare for a potential initial public offering this year.
But the focus on Shein’s relationship with China is significant. Alongside other brands like the viral social app TikTok and shopping app Temu, Shein has become a target for American politicians from both parties. They accuse the company of using fabric made with forced labor, calling it a tool used by the Chinese Communist Party—a claim that Shein denies.
🗣️ “Not everyone will be fooled by Shein’s deceptive practices,” wrote Senator Marco Rubio, a Republican from Florida, in a letter he sent to other lawmakers this month.
As the relationship between the United States and China deteriorates, some of China’s enterprising brands are taking action to distance themselves from their home country. They have established new factories and headquarters outside China to serve the United States and other foreign markets. They emphasize their foreign relationships and have removed any mention of “China” from their corporate websites.
TikTok has set up headquarters in Los Angeles and Singapore, and they have invested in new U.S. operations aimed at separating their American user data from their parent company, ByteDance. Temu has established headquarters in Boston, and their parent company, PDD Holdings, has moved its headquarters from China to Ireland.
Chinese solar companies have established factories outside China to avoid the tariffs imposed by the United States on solar panels from China and to reduce their exposure to Xinjiang, a region that the United States has banned imports from due to the use of forced labor.
JinkoSolar, a major company producing one in every 10 solar modules installed globally, has established a supply chain completely outside China to manufacture goods for the United States.
Other companies, even those not owned by Chinese entities, are building barriers between their Chinese operations and their global businesses. They believe this is the best way to avoid complications from new restrictions and any risks that could harm their reputation.
Sequoia Capital, a venture capital firm, has announced plans to divide its global business into three separate partnerships, creating unique entities for China and India.
Shein stated that they are a “multinational company with diversified operations across the world and customers in 150 markets, making all business decisions with that in mind.” They claim to reject the use of forced labor, avoid sourcing cotton from Xinjiang, and comply with all U.S. tax and trade laws.
A spokesperson for TikTok clarified that the Chinese Communist Party has no direct or indirect control over ByteDance or TikTok, emphasizing that ByteDance is a private, global company with offices in different parts of the world.
🔍 “Around 60 percent of ByteDance investors come from outside of China,” added a person close to the company.
While Chinese companies are attempting to detach themselves from their Chinese roots, it remains to be seen whether this strategy will protect them from the growing hostility between the two superpowers.
