As the survey suggests, the worsening of US-China relations, particularly over Taiwan, together with COVID-19-related supply chain disruption and Western political pressure to disengage from China, has prompted multinationals to reassess their Chinese business risks. Many firms are looking to lighten their China footprint but those already committed to the Chinese market will stay.
It is not China's manufacturing capacity that companies will find difficult to replace, but its manufacturing expertise at scale.
December's holiday retail season will give Western CEOs an excuse to disengage from China if supply chain problems hurt sales.
Western multinationals face a growing risk of criticism from customers and employees for their business activities in China.
Russia's war against Ukraine raises the risk that China could be caught up in Western sanctions against Russian companies.
