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How are businesses responding to the ethical concerns about doing business in China?

On Behalf of | May 27, 2022 | Business Law

The world is increasingly moving away from doing business with China under concerns about the human rights violations in the country. It is slowly starting to change the business landscape.

In the past, China was huge in the global market because of being able to offer many benefits when came to products and materials. The Harvard Business Review explains concerns over ethical issues have started to cause many companies to think twice about doing business with the nation. Many businesses are following one of three general paths.

Cutting off ties

One option they have is to completely stop doing business with China. They withdraw all business dealings and move to another country or back to the United States. This can be tough for companies to do because it is a costly venture. Not everyone business has the financial ability to completely end their connections with the nation.


Another option is for a company to avoid the issues as much as they can while continuing business in the nation. Some companies feel the perks outweigh the issues with China, so they choose to keep moving ahead with business as usual and hope their choice does not impact their bottom line in other countries.

Continuing but speak out

Many companies that cannot afford to leave China completely, continue business in the nation but under protest. They spend time on activities that ensure people know they do not support the Chinese government’s actions.

A company has to make its choice based on what is best for it. Not everyone can pull up stakes completely, and some companies value the benefits of dealings in the nation and do not want to get out.