The Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party.
A mouthful, I know.
But here is the geopolitical situation facing American multinational corporations (MNCs).
Rep. Mike Gallagher (WI-08) dropped this nugget on Face the Nation.
The Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party plans to speak with the National Basketball Association (NBA), The Walt Disney Company, and "other companies... that have substantial business interests in China."
Face the Nation host Margaret Brennan also asked if Gallagher plans to hold a field hearing in Taiwan.
Gallagher indicated that the Committee can hold meetings beyond the US and does hope Committee members will visit Taiwan when appropriate, but did not confirm a field hearing in Taiwan.
I suspect American MNCs are woefully unprepared for this Committee and hope that any discussions with their senior executives are off-camera, on background, and not officially before the Committee.
Consider that when Barack Obama was running the White House, he gave Xi Jinping a list compiled from American MNCs on how to better open the Chinese marketplace.
Now we have a Committee asking for the same list but seeking to close down that marketplace.
The Chinese marketplace is immensely important to American MNCs.
Take Apple.
According to Statstic, Apple's net revenues from the US were $133.8 billion in 2021 compared to $68.4 billion from China.
After 2015 when the company generated $58.7 billion in revenues, 2021 was Apple's best year in China.
And before you think this geopolitical situation is so simple because it's China, go and check your investments.
And once you have completed that task, consider that if American MNCs depart the Chinese marketplace, German, French, British, Japanese, South Korean, and Australian MCS will be pleased as punch to have less competition.
The US government has a long history of institutional inability to integrate economic strategy with foreign policy goals.
The Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party is the latest attempt by the US government to place economic strategy on par with diplomatic and military goals in an attempt to decide the national interest of how American MNCs deploy their shareholder capital and make independent business decisions.
The real question the Committee should seek to answer is, as a nation, do we believe it is right and proper for the US government should decide for American MNCs and their shareholders that mercantilism or liberalism is the best means to pursue US geopolitical objectives?
Communications will play a vital role in answering this policy question.
It is not the time for "no comment."
If you need help with your geopolitical business communications, Caracal is here to help.
Enjoy the ride + plan accordingly.
-Marc
ITK Daily is geopolitical business intelligence for senior executives with global ambition.
ITK Daily curates news @ the intersection of globalization, disruption, politics, culture, + sport and provides actionable insights and sharp commentary.
