GOOD MORNING FROM LONDON
As the Summer Olympics peaks, the focus ahead will switch to the Beijing 2022 Winter Olympics and efforts by US Congressional members to urge US corporations to pull their sponsorship of the Olympics because of China alleged genocide in Xinjiang.
Prophetically, China’s spokesman, Zhao Lijian, said “We believe that any rational and conscientious business, especially American businesses that have benefited enormously from more than four decades of progress driven by reform and opening up in China would make the right judgment”.
So the scene is set for a major political confrontation as the US hopes to hurt China by organising a world boycott of the Winter Olympics and China fights back and warns US business of serious consequences from the Chinese consumer if they pull back from the Olympics.
The context needs to be recalled. The number one world geopolitical issue is the rise of China and the relative decline of the US. China continues to prosper + develop as the US struggles. The US is determined to protect its leading role + bring China down to size – hence the genocide allegations; the rejection of China’s BRI; the increase in S China Sea tensions; and the policy of de-coupling from China. The US hopes China will pay a price for challenging US supremacy. This is the focus of US-led efforts to organise a worldwide boycott of the Beijing Olympics. Damage China!
US business – European business too – will come under intense pressure from respective Governments to fall in line. But Business has one Priority and that is Business just as Politicians have another Priority – Politics.
The stage is set for a Titanic Struggle. Pressures will build. CEO’s will be receiving phone calls from the White House at the same time as their staff in China warn of the business consequences of participating in the Boycott.
Expect future Updates in this Column