The China exposure every CEO must address

The supply chains, innovation shifts, and geopolitical moves that are rewriting the rules for every Western company.

[Photo: Shan/Adobe Stock]

Most Western executives think their exposure to China begins and ends with the question of whether they buy from or sell to Chinese companies. They are wrong. China’s capacity for innovation, its manufacturing dominance, and its geopolitical influence are changing the competitive landscape that all businesses operate in. Even when Chinese companies aren’t swimming in your part of the ocean, the country’s policies and priorities have a direct impact on the water.

The facts are undeniable. The research institute Rand Corp. estimates that Chinese AI models now operate at one-sixth to one-fourth the cost of comparable American systems, and a U.S. advisory commission warned this week that Chinese AI now dominates global open-source usage rankings. But........

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