​Strategic Communications: Navigating Risk for Chinese Companies on the Global Stage

By: Phil Lisio, Managing Partner, The Foote Group

As Chinese companies continue to expand their international influence during a time of unprecedented sensitivity and risk, communications has become a key strategic tool, essential for both success and survival. Effectively communicating during this time was key point of discussion in a recent Page Conversation I participated in, Communicating Through M&A: Strategy, Sensitivity, and Stakeholder Trust.

​​A Shifting Media Landscape​​

In the past, the playbook was straightforward. Chinese firms could actively court high-profile international media to raise their profiles among the global investment community and potential partners abroad. During the years of rapid economic growth and transformation, the robust international media presence in China was hungry for content. Companies could easily develop strong relationships with reporters, resulting in positive and widespread coverage.

Today, the need to actively communicate with international audiences—including customers, investors, and regulators—is as acute as ever. However, the landscape and risk profile has fundamentally shifted. Amidst rising geopolitical tensions and increasing regulatory and public scrutiny, crafting a sensible and effective international PR strategy has become immensely complex.

​​PR as a Core Strategic Tool​​

It is crucial that international PR be seen not as a mere publicity function, but as a strategic tool for accomplishing core business objectives. In an era where raising an executive’s profile can result in unwanted scrutiny, a meticulous benefit-and-risk analysis must be at the heart of the company’s strategic planning.

In short: the corporate narrative must be guided by clear business imperatives.

For example, a company aggressively expanding its high-end automotive equipment sales in Europe must build a strong profile with key industry players. However, heightened public exposure could also create vulnerabilities. In this case, the Chief Communications Officer might advise a strategy that centers the corporate narrative on product excellence. This involves working with top industry trade publications on articles that focus solely on the strength and innovation of their products, building crucial credibility within the specific ecosystem that drives sales while minimizing broader, less relevant scrutiny.
​​

Integrating Comms from the Start: The M&A Example​​

This strategic integration is perhaps most critical during mergers and acquisitions (M&A). Given the fast pace of transactions, identifying communications risks can often fall by the wayside, with devastating consequences.

As a starting point, the communications team must ask: What are the clear benefits of the deal to various audiences? And where do we face real reputational risks?

Consider the Smithfield Foods acquisition in the U.S. A key vulnerability was the public fear that "Chinese pork" would be imported into the American market—a concern that, if not proactively addressed, could fuel political opposition and scuttle the deal. The communications team's role was to identify this vulnerability early, a risk that legal or financial teams might not focus on, and develop a narrative that put the benefits to US front and center– primarily, a huge market for pork products while proactively assuring stakeholders about food safety, supply chain independence, and job security.

Ultimately, communications must be integrated into the foundational level of strategic planning. By identifying and addressing critical vulnerabilities in public perception and reputation that other groups are not focused on, the CCO fulfills a crucial role ensuring that business objectives are not undermined by unforeseen reputational risks and external challenges.