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Significance

The Biden administration has continued the hawkish foreign policy stance towards Beijing adopted by his predecessor, Donald Trump, maintaining the central aspects around trade and investment. This is increasing business costs, risk and complexity for multinational companies.

Impacts

Beijing will increasingly encourage US firms to lobby at home against the Biden administration's hard line on China.

Western sanctions on China for not complying with sanctions on Russia are a rising risk for US firms doing business with China.

Some US companies already see employees refusing to take up roles in China and consumers rejecting Chinese-made products.

Popular sentiment will move further against corporate efforts to downplay the role of morality in international business.

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