A China Warning From Russia in Earnings Season
By WSJ-The Editorial Board
April 15, 2022
The Ukraine war is coming to Wall Street as a new earnings season gets underway and more companies write down their Russia investments. Which should prompt a question for CEOs and shareholders: What about China?
China is a much larger economy than Russia, and Western executives might conclude it would be a disservice to shareholders not to compete in that market. Yet precisely because of China’s size, the economic risks associated with a possible conflict would be much greater. Russia write-downs are a warning to Western executives to start preparing now for the possibility that danger is ahead.