TAIPEI (TVBS News) — American businesses have devised new strategies for the Chinese market despite the soaring tensions between Washington and Beijing, according to the former president of the American Chamber of Commerce Shanghai, Ker Gibbs.
Speaking to TVBS commentator Wenchi Yu, Gibbs remarked that national security issues and Taiwan dominate conversations between the U.S. and China.
However, he stressed the importance of remembering that the commercial relationship is "mutually beneficial, as it has been over a long period."
Gibbs also underscored China's pivotal role in the global market, ranking fifth globally. He noted that a multinational company can only claim true global status with a presence in the Chinese market. He specifically addressed the potential of innovative Chinese companies, particularly in the automotive industry, as future international competitors.
Furthermore, Gibbs pointed out that policymakers in the U.S. have been discussing decoupling from China. However, he highlighted that amid widespread complaints about inflation, a complete decoupling would lead to significantly higher costs for goods. For example, consumers may spend US$3,000 for a US$800 TV. Gibbs remarked with a smile: "If you do not like inflation, you are going to hate decoupling."
Despite the contentious political relations, Gibbs emphasized that the Chinese market will remain highly integrated with the rest of the world, including American and European markets. He believes ongoing business opportunities will continue to arise in the global economy.
