This article was originally published on Forbes.com on June 20, 2023
RACHEL KULE, PURSUIT PR
Forbes Councils Member
The relationship between the world’s two largest economies, the U.S. and China, has always been dynamic. Although recent tensions remain high, rapid growth in emerging countries like Indonesia and Vietnam, along with China’s return from Covid-19 lockdowns, mark a new economic phase for the region. Corporate executives wanting to stand out or expand their presence need to have an articulated Asia strategy prepared.
My company has a track record of work with U.S.-based clients conducting business in Asia and within the China market specifically. Our team includes multilingual specialists with Mandarin fluency in both the U.S. and Beijing, as well as expertise in crafting Asia-related thought leadership pieces and international communications strategies. We understand the need to both develop and amplify content across the world.
Based on our experience, Asia still offers world-beating growth. Despite global headwinds, the five largest economies in the Association of Southeast Asian Nations (ASEAN) are expected to grow around 4.3% this year, with Singapore close to 2% and expanding slightly for 2024. Deals in the region are also expected to ramp up later in 2023.
Some of the best opportunities appear during these periods of economic volatility. To be a step ahead with these changes, companies need to monitor events, assess impacts and communicate quickly as market conditions change. When they do, CEOs can explain new strategies to all stakeholders in a timely, transparent manner and thereby establish a positive corporate reputation.
This is especially important with U.S.-China relations on such shaky foundations. During uncertain times it’s critical for firms to maintain transparent communication, adding to their integrity in the eyes of customers, investors and suppliers when strategies change. Many firms are reevaluating their China presence, the structure of regional supply chains and their exposure to a slew of new restrictions and tougher market conditions.
The geopolitical situation is becoming more complex with new U.S. sanctions, potential legislation and new leadership in China looking to build domestic capacity rather than relying on foreign firms. And yet, Chinese companies are still planning to list on U.S. exchanges this year. United States financial firms are expanding their wealth management operations in China. And U.S.-China trade remains robust.
Re-shoring, near-shoring and friend-shoring to other manufacturing hubs in Asia also continue to trend, with strong interest in Singapore as a regional financial hub and Vietnam, the Philippines, India and Malaysia as manufacturing bases for apparel, technology and consumer goods firms.
For stakeholders in companies with a significant Asia presence—from investors to employees to customers—it can be a confusing time. This necessitates clear and timely communication to explain potential changes to a company’s overall strategy.
This mix of positive and negative headlines requires proactive executive communication about whether a firm has potential exposure to shifting geopolitical winds. If so, stakeholders will want to learn about the steps the company is taking to mitigate those risks. Shareholders, for example, are going to want to know more than the standard talking points about financial performance. Either through corporate communications or quarterly letters, they will want explanations about strategy, co-locating manufacturing facilities, entering new markets or hedging against political downturns.
The C-suite needs to be prepared to not only address fast-moving events on the ground that impact their bottom line but also stay ahead of the curve with managing risk and communicating how they are well positioned to benefit from emerging opportunities and not face potential recriminations at home or abroad.
Communication strategies need to be tailored to local conditions and sensitivities where new investment, operations, sales or manufacturing are headed. The reputation of foreign firms can hinge on whether their outreach is sincere and beneficial to hyper-local populations or environments where foreign firm activity is highly scrutinized.
Providing services in different countries in Asia also requires customized brand reputation monitoring. Simply gathering influencer scores or the number of mentions in various online platforms will not suffice. Effective decision-making requires local insights, trend analysis and cultural awareness to be successful.
Similarly, thought leadership platforms and C-suite eminence programs in Asia need to be adapted to local conditions and preferences. What works in the United States may not resonate abroad. Creating and communicating a sustainable and effective program requires consideration of industry reputation, the prominence of key executives, demands on natural resources and even historical precedents.
In any market, clear, balanced and fact-based proactive communication will help accelerate a company’s strategy and increase credibility at home and overseas.