Author name: Angel Bryant

With the approval, China “removes a long-time and major political uncertainty for Shein,” Han Lin, China director for consultancy firm The Asia Group, told AFP. “Beijing is signaling selective reopening, not deregulation — rewarding companies that strengthen China’s economy while remaining aligned with national security and regulatory priorities,” he added.

Kurt Tong, a former diplomat in Japan who is now a managing partner at the Asia Group, a consultancy, said he expected Japanese investment to rise significantly as a result of the deal. He added, though, that the $550 billion total was still probably “aspirational,” given that Japan’s entire investment stock in the United States

“Markets thrive in uncertainty but dealmaking does not,” said Han Lin, China country director of The Asia Group consultancy. “China’s slower growth, policy shifts, trade tensions have created volatility that is the bread and butter of trading desks.”

Han Lin, a cross-border finance specialist at The Asia Group consultancy, said Beijing’s move was driven by “concerns over capital outflows, regulatory sovereignty, and unlicensed offshore securities activity.  Future overseas deals will continue, but approvals will increasingly favor strategic sectors aligned with national priorities.”

Regarding the struggles of U.S. consumer brands in China, Han Lin, China Country Director at The Asia Group consultancy, said “The challenge comes from local substitutes offering comparable quality but at lower price points.  Even if not the best, all they have to be is good enough.“

“China’s “Middle Corridor” trade route is a strategic move to manage geopolitical risk rather than a mere logistics solution,” said Han Lin, China Country Director, The Asia Group. “By transforming transit nations like Kazakhstan, Azerbaijan, and Turkey into vital connectors, China is signaling a broader shift where supply chain resilience is now valued over the

“There’s been a conscious effort by Beijing… to have the capital markets play a larger role in financing Chinese innovation,” Han Lin, China country director for The Asia Group, a consultancy, told AFP. “US-China tensions have positioned Hong Kong — whose currency is pegged to the US dollar — as a critical venue for Chinese firms

The measures function more as a “diplomatic message” as Beijing steps up its pressure on Tokyo, said George Chen, partner for Greater China at the advisory firm The Asia Group. “From Beijing’s perspective, Japan has not taken meaningful actions to stabilize bilateral ties,” Chen said. “And concerns are growing in China about deeper defense cooperation

“Global success attracts global scrutiny. TikTok and Shein showed that regulatory and political risks can grow faster than revenues,” says Han Lin, a director for The Asia Group, a consulting firm, and a former senior Wells Fargo banker in China. “Xiaohongshu must convince investors that it can scale internationally without becoming the next geopolitical lightning

“For now, Beijing is increasing pressure on Tokyo to take visible steps toward improving ties,” said George Chen, partner for Greater China practice at The Asia Group. “In the short term, Japan–China relations remain fragile — not yet stabilizing, and at risk of slipping further if neither side moves to arrest the downward trend.”