The China exposure every CEO must address

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 artificial intelligence is only one expression of a broader shift. The same country that is closing the AI gap also manufactures over 80% of the world’s batteries, builds more commercial ship tonnage in a single year than America has since Wor