A Washington-based think tank, the Information Technology and Innovation Foundation (ITIF), suggests that US technology companies should continue operating in China despite political pressures. Remaining in China allows these firms to tap into significant revenue potential, counter local competition, and monitor consumer trends. Furthermore, profits generated in China can be reinvested in US research and development, bolstering American innovation leadership.

US technology companies should stay in China, despite persistent political pressure for their exit, to capitalise on revenue potential and stifle local competition while monitoring consumer trends, according to a Washington-based policy think tank. Sales generated by American firms within China can be reinvested in research and development back in the United States, thereby helping “sustain US innovation leadership”, the Information Technology and Innovation Foundation (ITIF) said in a new...