Chapter 1 - Introduction

Summary

The current geopolitical context presents significant challenges for multinational companies (MNCs), especially those operating in countries that have disputes with their home country. This complexity is further intensified for MNCs in China or those heavily reliant on the Chinese market. The recent joint statement by G7 leaders emphasized the need to “de-risk” from China, acknowledging that completely “decoupling” any major economy from China is nearly impossible (Lee, 2023). As a result, there is now a widely recognized consensus on the importance of “de-risking” strategies when engaging with China across a wide range of countries (Gewirtz, 2023).

However, the interpretation and application of the term “de-risk” vary among different nations due to the inherent ambiguity of the concept and the varying levels of geopolitical tension each country has with China (Gewirtz, 2023). Consequently, for MNCs, it is crucial to possess comprehensive knowledge in two key areas related to China: a deep understanding of current policies governing foreign businesses and entities in China and a thorough comprehension of consumer cohorts in the Chinese market.

This book delves into both aspects, with a particular focus on comprehending the evolving landscape of consumer nationalism in China and providing guidance on how MNCs can effectively manage their public relationships within the Chinese market. By gaining insights into the dynamic policies and consumer sentiments in China, MNCs can formulate robust “de-risking” strategies that align with the unique challenges and opportunities presented by this complex environment.

The central focus and argument of this book revolve around the increasing risk that nationalist consumer outrage poses to businesses in China and those engaged with the Chinese market. As China faces growing diplomatic challenges on the international stage, MNCs will need to navigate these complexities with heightened caution by implementing strategic communication and public relations plans. Existing academic works on consumer nationalism in China primarily explore two key aspects: the delicate balancing act it presents for China's leaders and how the discourse of national pride and dignity reflects the complex interplay of China's ambivalent relationships with certain countries. While previous publications have provided valuable insights into the concept of consumer nationalism, its processes, participants, and initiatives, they have often overlooked the crucial analysis of its consequences.