Sometimes You Just Have to Manage Political Risk
It’s not classic management consulting, but Consultants Collective has political risk expertise you can call on as well. Recently, Consultants Collective member David Schlesinger has been interviewed four times by Monocle radio 24, a web-based global 24-hour radio station run by Monocle magazine.
David, the former editor-in-chief of Reuters news, consults on media, startups in the tech media space, and on political risk as it affects companies operating in or with Asia.
The U.S. – China trade fight could certainly affect every business, whether it is directly involved in the China trade or not. In this interconnected world, a trade war would have many casualties. Here, David gives his view on the latest developments >
Making a huge statement about wanting to project military might, China has begun sea trials of its first home built aircraft carrier, the same week it conducted exercises with its first carrier, a rebuilt Soviet ship bought from Ukraine. The country began a massive modernization program for its military in the 1990s. One catalyst was tensions over Taiwan in 1996: when China was conducting military exercises and missile tests near the self-governed island that Beijing considers part of Chinese territory, the United States sent two of its aircraft carriers to show its support for Taipei. Beijing clearly wants to show that it has naval might now and won’t be challenged in its own backyard, making a point not just about the waters near Taiwan, but also in the contentious South China Sea, the conduit for billions of dollars worth of trade and home for vast wealth in fisheries, oil and gas.
Of course the Iran nuclear deal has been in the news. China has been steadfast in arguing that the Iran Nuclear agreement must be upheld, saying that only the International Atomic Energy Agency — not the U.S. or Israel or any other party — can judge compliance. In an interview with Monocle Radio’s “The Globalist” program, David argued that China’s stance is rooted in three key concepts: energy supply, its relationship with the United States as a super power, and the North Korean nuclear issue. Listen >
And finally, a global hot spot where the heat is rising is Taiwan. China’s air force is again flying encirclement runs around Taiwan, giving stark evidence that the issues of the island and its sovereignty, autonomy or independence could easily become a serious world flashpoint – particularly as the US administration of Donald Trump seems to want to play a “Taiwan card” to tweak China’s dragon tail.