The impact of the digital geopolitical landscape on distributed companies

Abstract: In an era where digital platforms play a crucial role, companies often encounter challenges associated with the digital geopolitical landscape. This thesis focuses on investigating the impact of digitalization on global companies operating in China, with an emphasis on the risks and challenges emerging from the digital geopolitical landscape. The thesis further aims to provide mitigations to avoid the threats posed to companies. Interviews with experts and stakeholders from FOI, Microsoft, and Atlas Copco were conducted, and additional internal data regarding competence development from Atlas Copco was used to support the results. The research findings highlighted that technology-related threats pose significant risks to distributed companies operating in China. These threats manifest in various forms, such as the constant need to adapt to the evolving Chinese regulatory environment and constraints on technology transfers. In response, several mitigations were identified, including the establishment of a dedicated team responsible for monitoring and complying with Chinese regulations and diversifying the supply chain. The thesis also examined the impact of these threats on the IT competence within Atlas Copco, bringing attention to concerns regarding knowledge gaps in advanced training specifically in China.