Insights

Diversification is a hot topic in many boardrooms as geopolitical tensions rise. In particular, Asia beyond China is becoming an increasingly attractive destination for manufacturing and sourcing.

We studied the adaptation strategies of more than 80 companies in 12 industries.

Sinolytics suggests that companies first identify geopolitical risks before embarking on an adaptation strategy. Remaining successful requires highly tailored, company-specific response strategies that allow for product-level differentiation.

More on Diversification.

China’s regulatory framework for cybersecurity and data is evolving quickly. To catch up on those developments and to provide guidance and recommendations for European businesses, Sinolytics and VDMA jointly released a “Cyber Security Use Cases in China” report. The 2nd edition of the report was published in September 2023 to guide through the most recent changes and adjustments of China’s cybersecurity regulations. The report is available to VDMA members via the VDMA website. For additional information, also see our Cybersecurity Primer.

China’s hydrogen and fuel cell sector is poised to grow exponentially. The NDRC just issued a fifteen-year development plan for the sector. It expects real commercialization of fuel cell vehicles and energy storage by 2030 with rapid market growth in heavy-duty applications. Sinolytics forecasts a fuel cell market size of 45 billion RMB by 2035.

The European mechanical engineering industry faces a complex economic and political business environment in China. Sinolytics conducted a joint study and survey with VDMA and Swissmem to assess the impact of China’s domestic policies and geopolitics on German and Swiss machinery companies.

As the largest CO2 emitter globally, China has announced its ambition in reaching its carbon emission peak by 2030 (the concrete roadmap is currently being drafted) and achieving carbon neutrality by 2060. To realize these two targets, China implements stricter environmental regulations with more effective enforcement in the 14th Five Year Plan.

China’s international logistics ambitions already have great impact on European logistics companies, from European port and railway operators to freight forwarders and postal services. Sinolytics supports these companies in seeking partnerships where sensible and bracing for competition where necessary.

In 2019, Sinolytics in partnership with the EU Chamber of Commerce in China published “The Digital Hand”, providing the first in-depth and comprehensive description of the Corporate Social Credit System (CSCS) and its implications for companies active in China.

Since founding, we have had the privilege to work with more than 40 companies, many of them among the largest and most respected corporations in Germany, Europe and the United States.

On 22 September, the Ministry of Public Security released new “Guiding Opinions” to kick-off regulation on the Multi-Layered Protection Scheme (MLPS) 2.0 and Critical Information Infrastructure Operators (CIIO).

Based on our analysis, expertise and experience, Sinolytics offers a full range of services.