https://unherd.com/2022/10/china-has-given-up-on-the-west/The inward turn is also squeezing out foreigners — though not all of them, of course. The Party is happy to host certain skilled individuals, such as English language teachers and pet bloggers, who amplify its messages about how the Tibetan and Uyghur peoples have benefitted from Socialism with Chinese Characteristics. Equally, the few hundred thousand Southeast Asians toiling on its production lines are welcome to stay. But at the levels of business management and control, something significant is happening.
Ker Gibbs, who was President of the American Chamber of Commerce in Shanghai from 2019 to 2021, has watched the growing de-foreignerisation of foreign-owned firms in China. To some extent, this reflects the development of a new generation of skilled Chinese managers able to manage complex supply chains. But he also notes that the constant pressure piled on Americans and other foreigners is causing an exodus. “It’s just not fun anymore” he tells me. “The space to operate freely has become more and more narrow.” Gibbs notes the growing authoritarianism of Xi’s China over the past decade was already pushing foreign businesspeople to leave, even before the pandemic. The draconian Covid lockdowns, particularly in Shanghai, were the last straw for many. In a few years’ time, American firms in China may no longer be run by Americans.
The same exodus can be seen in Hong Kong, once the “Gate to China” but increasingly just another Chinese city. Xi’s crackdown on free speech, the Party’s assault on the rule of law, Covid restrictions and the slow but constant “mainlandisation” of the territory are steadily diminishing its attractiveness. Hong Kong is still an “air lock” through which China can access foreign capital, but foreigners are leaving, which is exactly what the Party wants.
Preparing for Total War with the West.