Nike CEO John Donahoe Says Breaking Up With China Would be ‘Disastrous’

Nike CEO John Donahoe addressed the rising geopolitical tensions with China, emphasizing that severing ties with the region would have catastrophic consequences for global trade.

Speaking at the CNBC CEO Council Summit, Donahoe discussed the potential scenarios of China invading Taiwan and its involvement in conflicts like Russia’s war with Ukraine.

He acknowledged the risks faced by global companies like Nike but stressed the importance of navigating these challenges while staying true to their strategy and values.

Donahoe highlighted the need for businesses to take responsibility when political institutions face uncertainty.

Nike is committed to being a global company, including its presence in China and other markets, despite the associated risks.

While contingency planning has taken place, Donahoe emphasized the company’s determination to move forward and maintain its global outlook.

The Nike CEO expressed his belief that global trade is beneficial not only for the economy but also for fostering peace and understanding.

He dismissed the idea of decoupling from China, stating that it would be economically disastrous for the United States, China, and the European Union.

Donahoe emphasized the mutually valuable role played by trade between these regions and stressed the importance of balanced and thoughtful trade policies.

Donahoe acknowledged the significance of China as Nike’s third-largest market by revenue.
He emphasized the company’s commitment to adhering to local standards while ensuring compliance with global rules, particularly regarding human rights.

Nike considers itself a local citizen in China, valuing its consumers and team in the region. Donahoe expressed a long-term perspective, recognizing the historical ups and downs in relations and the company’s strong leadership position.

In summary, Donahoe acknowledged the geopolitical tensions with China but emphasized the importance of global trade and maintaining a strategic and values-driven approach.

Nike remains committed to its presence in China and other markets, focusing on long-term goals and adhering to local standards while upholding global rules.