China Briefing | The days of US multinationals in China ‘keeping quiet while making a fortune’ are numbered – just ask Tesla or Walmart

“Keeping quiet while making a fortune”. This Chinese proverb was made popular by Jiang Zemin, China’s top leader from 1989 to 2002. Jiang relished citing the catchphrase to illustrate his governing philosophy, a folksy variation of Deng Xiaoping’s doctrine of “hiding one’s strength and biding one’s time”, which had successfully guided China’s foreign policy over the previous decades. The logic also appealed to multinationals as they tapped China’s huge market and turned handsome profits.

These days, however, they often find themselves in a pickle, having to keep quiet for the wrong reasons while making money becomes increasingly difficult. This is not only because of a changing business climate in which they face more home-grown competitors but more importantly because they are caught in the open confrontation between China and the West over ideology and values. Beijing has given up Deng’s policy of keeping a low profile and is ready to go mano a mano with the United States and its Western allies which increasingly use human rights as a weapon to target China’s industries and companies.

Last month, Chinese media accused the Sam’s Club chain, part of the US retail giant Walmart, of “stupidity and short-sightedness” for its decision to remove all Xinjiang-sourced goods from its stores.

The membership-only chain apparently made the move as a precautionary measure after US President Joe Biden signed into law that month a bill which virtually bans all imports from Xinjiang in response to the alleged used of forced labour.