The main news of this week, except Christmas, is that China reopens its borders on the 8th of January.
The country is getting back to normal. But what does it mean for companies all over the world? I’ve been involved in some debates about the topic on social media, and I summarised my thoughts in a short post you can find below.
Also, you’ll find free links to some of my new articles below the post. If you like the stories, you can support my work by becoming a Medium member.
Merry Christmas to all of you who celebrate it!
Will your strategy change because China reopens borders?
If it does, it may be bad news.
China reopens, and this is major news for business media. And many experts discuss the question that looks obvious – how will it influence corporate strategies all over the world?
On the one hand, it sounds logical. Chinese reopening will kickstart tourism, air travel, the oil industry, the luxury market, and even the housing market. The latter will happen if wealthy Chinese people will start buying houses abroad, being tired of their domestic regulations.
That’s true.
But on the other hand, if CEOs need to revisit their strategies now instead of celebrating holidays with their families, their strategies are weak. They depend too much on one person’s decisions. Instead, a strategy should be more resilient.
It was evident that China would reopen sooner or later, and many companies were ready for that.
Many companies have adapted to closed borders, and many of my customers successfully worked with Chinese manufacturers even during the travel ban.
This Chinese government decision will lead to many changes and business decisions, but they will be tactical ones. It won’t lead to a strategic paradigm shift. After all, China gets back to normal and becomes a country we have already seen before.
Strategy is a long-term plan that must consider various possible external changes. Do not forget that China may close its borders again if this seems logical to the government. And our strategy must take it into consideration too.
Strategy - map it out yourself!
My new articles on Medium (free links):
A Big Strategic Mistake I Made. You, Probably, Make It As Well
Strategic thinking, strategic planning, and strategic acting are not the same things
Why Is Your Theory About A Distant Future Wrong?
Some natural obstacles prevent us from thinking long-term
Focus Is Essential. But Changing Focus Is More Important
Concentration matters, but we need to switch our attention from time to time.
Strategic Thinking Bias. Part 1
Are you confident in your strategy? If yes, that’s a reason to doubt
An Illusion of The Unchanging World
And the Three Tens exercise to overcome it
See you next week,
Sincerely yours,
Svyatoslav Biryulin