What is Chexit?

Chexit is the business exit from China.  There was no vote in China or elsewhere to sanction this.  Chexit is a “vote with your feet” exercise.  China’s world-wide reputation has become so sour that many businesses will leave China if they can. Moreover, few new businesses will come. 

As well, Chexit is a matter of fashion.  Like popular night-spots that rise to great popularity and then simply fade, China’s popularity for foreign business interests has peaked and now is fading. (Remember Studio 54?)  As with night-spots, the foreign business attenuation in China will continue.  It is not clear to this author China can really do anything about it.  Apparently doing business in other countries on the Pacific Rim is simply easier, more business friendly, and with full corporate ownership. 

Chexit is real and is accelerating.  It may well be most business and manufacturing in China will ultimately be owned completely by Chinese.  In fact, it is the historical nature of the Chinese to have their country free of all foreign presence. 

Also, we may see the Hong Kong business and banking hegemony diminishing as a part of the process. 

Even if China caves completely in a trade deal with the US, it may be too late, particularly for Xi Jinping.  Popularity fading is difficult to reverse. The number of movie stars, restaurants, resorts, and department stores have experienced the “big fade” is immense.