June 14, 2024

United States: Chinese companies are changing their image in response to the Biden administration’s restrictions

Products - USA - China

Products – USA – China

Chinese companies operating in the United States are trying to evade the sanctions and restrictive measures imposed by Washington by changing their image and establishing companies based in the United States. we To sell their products. This was reported by the Wall Street Journal, citing national security officials and experts. Creating subsidiaries or affiliates under different names is a tool that Chinese companies operating in the United States have historically used to overcome regulatory or reputational hurdles. But this trend has accelerated in conjunction with the increasing tightening of restrictions imposed by President Joe Biden’s administration. “Chinese companies suffer a setback, but then they adjust their business strategy and can move in new directions,” Derek Scissors, former commissioner of the US-China Economic and Security Review Commission, told the newspaper.

The Wall Street Journal highlights this example Tik Tok, which has been trying for years to distance itself in terms of image from its Chinese parent company ByteDance by establishing a headquarters in the United States and exploring rebranding strategies in the United States. Despite these efforts, the video app may face a ban under a new law passed by Congress. TikTok responded by filing a lawsuit against the US government, accusing it of violating rights guaranteed by the First Amendment. The newspaper quoted experts as saying that the efforts made by Chinese companies to localize production, introduce American trademarks, or establish subsidiaries with new names are legal. However, such strategies are causing growing anger among Washington regulators, who have difficulty determining which laws and regulations apply when a company’s ownership structure is unclear.

See also  Why do clocks still come back in winter?

Also read other news about him Nova News

Click here and get updates on WhatsApp

Follow us on Nova News social media channels Twitter, LinkedIn, instagram, cable