China’s promise of an open business environment and support for the private sector is being questioned as national security concerns and rising geopolitical tensions damage confidence. The case of Syngenta, the Swiss agritech giant, exemplifies the growing difficulties faced by Chinese and foreign businesses in China. Geopolitical pressures have threatened to derail the listing, with China’s ownership of Syngenta through ChemChina, a state-owned chemical company associated with the military, raising concerns. Corporate compliance becomes a challenge for companies caught between Chinese rules and potential misrepresentation claims from foreign exchanges and shareholders. While complete withdrawal from China is unlikely for international firms, confidence in the Chinese market may be diminishing as businesses navigate these challenges.
Source: The Guardian October 02, 2023 00:16 UTC