| Companies Thought They Could Ignore Geopolitics. Not Anymore. Last year: -
93% of multinationals reported losses linked to political instability -
68% of companies bought political risk insurance -
48% predicted deglobalization would significantly strengthen -
42% predict decoupling from China will significantly increase “Companies’ ability to do business in Russia and China will continue to deteriorate,” Bergman [CEO of M&C Saatchi World Services] said. “When, and it’s when, China acts on Taiwan, the international reaction will significantly impact global businesses… The impact will be significant if not crisis-bringing.” What it will look like if China launches cyberattacks in the U.S. Chinese hackers are likely to target U.S. military networks and other critical infrastructure in the event of an invasion of Taiwan. ‘Resupply is not an option’: Lawmakers wargame Chinese invasion of Taiwan “If the Chinese do invade Taiwan, any business or investor that is overly dependent on the Chinese market, including both suppliers and customers located there, will suffer. We want American businesses to deal with these risks responsibly, not stick their heads in the sand.” Geopolitics, container shipping rates and an ominous sign from Taiwan Contract rates on the short-haul run between China and Taiwan now cost the same as Shanghai to Los Angeles. Erik Devetak of Xeneta predicts that “geopolitics will affect the length of the contract people are willing to take, because with a more uncertain world, in terms of geopolitics and therefore also indirectly in terms of supply chains, longer-term commitments potentially become less appealing to the supplier.” Here’s How Supply Chains Are Being Reshaped for a New Era of Global Trade “Nearshoring. Automation. Supplier diversification. Sustainability. Companies are adapting their operations to changing market pressures and geopolitics… You have to ask yourself, which do you want? Are we going to minimize risk for shareholders and customers or are we going to minimize costs?” US Companies in China Grow More Pessimistic About Bilateral Ties | 
