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Short blog posts, journal entries, and random thoughts. Topics include a mix of personal and the world at large. 

The soft power of China part 3

The NBA’s ongoing scuffle with China in its refusal to outright condemn the remarks made by Rockets GM Daryl Morey has brought back to the surface of other incidences where companies and brands have capitulated to the whims of the communist regime. Noah Smith posted on twitter a list of such companies and their particular acquiescence.

I understand that these brands want to protect the Chinese golden goose: there’s shareholders to answer to, after all, but what I’m not understanding is how seemingly easy these companies are folding to the pressure from China, as if they themselves don’t hold any cards of power. Have they all forgotten about their own intrinsic value? Surely a product’s popularity in China isn’t solely because the government allows it to flourish; the product itself have to be good and desirable in the first place.

If China outright bans the NBA from broadcasting in its country, Chinese basketball fans will find a way to watch it regardless - because it’s a beautiful game. It’s the same reason we see Chinese nationals on twitter, even though the app is banned in China. Companies like Apple should remember a time before they were officially in the Chinese market, when Chinese scalpers traveled over the world to procure iPhones to sell back home. Rich people in China will find a way to buy Louis Vuitton bags even if China bans them from sale.

It’s simple: make something valuable, people will want it. Brands need to remember that they too have power, and removing their products from China via a ban by the government can be equally threatening towards Chinese consumers. Despite what some people have said, the 1.4 billion people of China are not a cohesive monolith; many will want an iPhone no matter what the government’s stance towards Apple is. Don’t forget that speech there is suppressed, and we in the west only hear from those the party want us to hear.

Perhaps the NBA should go: “Fine, we’ll cease our presence in China; sure hope Chinese basketball fans enjoy the CBA!”

Three into one.