Mastercard CEO questions potential for U.S. businesses to sever ties with China

President Donald Trump, who was re-elected, campaigned on imposing high tariffs on China and other foreign entities. Economists have warned that these tariffs could have detrimental effects on domestic prices and trade relations. At the “Fortune” Global Forum in New York City, Merit Janow, an independent board chair at Mastercard and professor at Columbia University, discussed how these policies could impact U.S. businesses. Janow highlighted the structural tensions between the U.S. and China, emphasizing that the mindset of viewing China as a primary geopolitical competitor is likely to persist.

Over the past decade, U.S.-China relations have become increasingly challenging. Despite President Biden’s efforts to maintain stability in his interactions with China, tensions between the two countries have remained high. Janow pointed to the technology industry as a key area of competition between the U.S. and China, with both nations implementing competitive restrictions to assert their dominance.

As tariffs increase and competition intensifies, Janow raised questions about the potential for a more deliberate decoupling between the two countries. The uncertainty surrounding the deployment of tariff strategies and their consequences creates challenges for businesses operating in both China and the U.S.

While noting the success of Mastercard in establishing operations in China, Janow acknowledged that the landscape varies significantly depending on the sector and historical context of each business. She emphasized the importance of considering the risks and opportunities inherent in this evolving relationship between the U.S. and China.