23 Oct Unit 2_MT497_Discussion response
13734Respond or elaborate on the response below:
China’s Changing Political Posture Toward Taiwan and Hong Kong
Over the past few years, China has taken a stronger and more assertive position toward both Taiwan and Hong Kong. China continues to claim Taiwan as part of its territory and has increased its military presence around the island, sending aircraft and naval vessels near Taiwan to discourage independence efforts (Associated Press, 2024a). Taiwan has responded by strengthening its defenses and warning of growing Chinese infiltration and spying (Associated Press, 2024b).
In Hong Kong, China’s government has tightened political control by enforcing national security laws that limit free speech and assembly, ending many of the democratic freedoms promised under the “one country, two systems” framework (Reuters, 2024). These changes have made the region less attractive for international companies, leading some U.S. and European firms to relocate to other Asian business hubs such as Singapore. According to Daft (2021), globalization connects nations so closely that political and economic changes in one area can have serious worldwide effects. For companies, this means rising operational risks and the need to diversify investments across more stable markets.
Impact on Business Ventures
China’s posture toward Taiwan and Hong Kong has significant implications for global business. Heightened tensions increase the likelihood of trade restrictions, cybersecurity threats, and disrupted supply chains. For example, technology and semiconductor companies based in Taiwan face the risk of military escalation, while financial institutions in Hong Kong operate under tighter government surveillance (Council on Foreign Relations [CFR], 2024). As Daft (2021) explains, managers operating internationally must anticipate such external threats and adapt their strategies to changing global conditions.
Some companies are now shifting manufacturing and headquarters from Hong Kong to neighboring countries, seeking stability and regulatory predictability. China’s attempts to use business exchanges as political tools, what Reuters (2025) calls a “business charm offensive”, also show that political factors can shape trade relationships and corporate behavior.
Why Managers Need to Understand Trade Alliances and Global Affairs
Global managers must understand trade alliances and international relations because they directly affect access to markets, tariffs, and business opportunities. Organizations such as the World Trade Organization (WTO) and trade agreements like the European Union (EU) and the United States–Mexico–Canada Agreement (USMCA) set the framework for how global business operates (Daft, 2021). A manager who understands these systems can better predict risks, identify new opportunities, and maintain compliance with international regulations.
Managers with what Daft (2021) calls a global mind-set are better equipped to work with people from different cultures, adapt to foreign regulations, and lead organizations across borders. They can recognize how changes in trade policy or political stability may affect business strategies and operations worldwide.
Why U.S. Managers Should Stay Informed About International Affairs
Even if a manager works solely within the United States, having knowledge of international affairs remains essential. Global events, such as supply chain disruptions in Asia, conflicts in Europe, or currency shifts, can directly influence American production costs, inventory, and consumer prices. Daft (2021) emphasizes that today’s managers operate in a “borderless world,” where isolation from global influences is impossible.
Understanding international issues also helps U.S.-based managers make better strategic decisions and maintain competitiveness. Awareness of trade trends, cultural differences, and political risks allows companies to prepare for disruptions and maintain strong supplier and customer relationships worldwide.
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