SubscriberBusiness

How would luxury react towards sanctions against China?

What would happen if the West imposed trade sanctions on China, which are currently enforced upon Russia following its invasion of Ukraine?

Eva Morletto

By Eva Morletto05 mai 2022

Unlike other economic powers, China's economic strategy allows it to be self-sufficient, especially in luxury goods (Shutterstock)

What if China decided to provide material help to the Kremlin? Beijing is now taking seriously the USA’s threats in terms of potential sanctions. The impact could be very heavy for China, as well as for the rest of the world, considering the nation led by Xi Jinping is much more integrated in the market than Russia.

Second biggest economic power worldwide, China had already undergone some sanctions related to the trade war which Trump’s America was leading against it.

It was then that the Middle Empire renewed its economic strategy already used under Mao Zedong: Chinese protectionism and self-sufficiency.  Furthermore, the country can count on a form of guaranteed stability through its control of capital, a way of containing currency flooding out during crisis. Not to mention that further to the targeting of ZTE and Huawei by Washington, Chinese economic analysts deemed necessary to advocate a lower dependance on imports, including in the tech, agriculture, energy, and of course luxury sectors.

Register

Newsletter

Be notified of the latest publications and analyses

Luxury needs china

Yet with an increase of 36% in sales in 2021 and 74 billion dollars in turnover, the luxury goods market in Continental China continues its growth in 2022, despite the Covid-19 pandemic which is still paralyzing some regions in the country and the cities of Shanghai and Beijing.

To continue reading this articles, subscribe now

CHF 10.- per month / CHF 99.- per year

  • Unlimited access to all paid content
  • Industry analysis you won't find anywhere else.
  • In-depth case studies on key business challenges.
  • Academic analyses, studies and publications written by professors and researchers from the Swiss Center for Luxury Research and some foreign universities.
  • Members-only events to grow your knowledge and network.

Share the post

Keep reading

Boycotting Russian diamonds or component shortage, complex cogs that await watchmaking and jewelry in 2022
Innovation & Know-How

Boycotting Russian diamonds or component shortage, complex cogs that await watchmaking and jewelry in 2022

Boycotting Russian diamonds or component shortage, complex cogs that await watchmaking and jewelry in 2022

By Cristina D’Agostino

The war in Ukraine forces luxury brands to take a stand
Business

The war in Ukraine forces luxury brands to take a stand

During the pandemic, the world seemed to be turning towards solidarity. The start of the war in Ukraine and the chain reactions in the worlds of luxury and fashion confirmed it: the times are no longer about postponing things, but about radical choices.

By Aymeric Mantoux

Register

Newsletter

Be notified of the latest publications and analyses