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Anti-sanctions law: for us or against us

The new law against punitive measures puts foreign companies in a quandary. They face drastic consequences in the second-largest economy if they comply with possible sanctions. To eliminate the risks in the long term, they would have to create completely independent value chains. That is economically risky. Yet the worst-case scenario also offers opportunities.

By
Marcel Grzanna
Image of Marcel Grzanna

For months, the US and China have been weakening their shared economic framework of global trade with mutual punitive measures. The anti-sanctions law from Beijing, which was passed last week (China.Table reported), leads to scenarios in which European and other companies find themselves in a quandary. In the worst scenario, companies are forced to change course in their business strategy through no fault of their own. Namely, which market they will choose: China or the US and its allies in Europe.

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