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Article

13 Jan 2010

Author:
Jamil Anderlini, Financial Times

Companies rethink China strategies

For the past two decades, western and multinational corporations have argued for greater political and commercial engagement with China in the hope of gaining access to the biggest potential market in the world. But during the past year...[there has been a] rethink[ing of] the policy of unquestioning engagement. “A less welcoming attitude is alienating big business...” said one western official...“Previously, when politicians in the west wanted to criticise China for its human rights abuses or other issues, multinationals would quietly lobby governments not to make a big fuss. But that appears to be changing.” Google’s threat to quit the Chinese market after it was targeted by a cyber attack is an extreme example of this growing frustration...But despite rising frustration among foreign companies, the Chinese market is too large and growing too fast for most companies to risk the confrontational stance taken by Google. [also refers to Rio Tinto]