For two decades, globalization has been the world economy’s central story line—or so it was until Russia and China sharply changed the narrative for big companies in the West, the question now is: can there be a happy ending?
After authorities cracked down on the massive pro-democracy protests in Hong Kong that began in late September, a British firm that provides tear gas to Hong Kong’s police decided to review its sales policy. The optics of the situation, perhaps, made that an obvious public relations decision. But the underlying risk of spreading tensions isn’t limited to traditional politically sensitive industries: In the wake of recent crises every globally oriented Western company should be rethinking its strategy too.
For nations, the geopolitical fireworks—the most incendiary since the fall of the Berlin Wall—don’t add up to a new East-West conflict. No one is talking about a nuclear standoff with Moscow, and Beijing lacks Vladimir Putin’s inclination for conflict with the West.