HSBC has its HQ in the West but its profits in the East. Whither HSBC?
Change is happening. More senior HSBC leaders are relocating to Hong Kong. 90% of HSBC pre-tax profits are made in Asia. The bank is in talks to close down its US retail banking presence.
This is more than a “tilt” or a “pivot” to Asia. This is a big strategic decision that confronts all major businesses looking to extend further into China. This is De-Coupling.
Not de-coupling from the East, not the isolation of China. This is the other direction – de-coupling from the West. The downward spiral of China-US relations is forcing a major re-think for the way forward for big companies.
This will affect all industries from car manufacturing to luxury goods and businesses will have to choose “between western markets and access to China, between liberal and authoritarian value systems”
This is History before our very eyes. The world is changing. The sleeping giant is awake and big developments are underway.