China's Public Diplomacy International companies face increasing reputational risks
merics.org. Date published
05/06/2019
International companies face increasing reputational risks
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Excerpt:
--Main findings and conclusions. Since 2017, China has criticized ever more openly communication campaigns launched by international companies outside its borders that directly or indirectly address Chinese issues.
--Beijing is using its economic power to assert its own geopolitical agenda or to promote its own initiatives, such as the Belt and Road Initiative (BRI).
--The Chinese government has at its disposal a powerful tool with which it can target foreign companies. It can engender and mute (social) media debate in a very targeted way. At the same time, state control over the media and the internet mean foreign companies have a hard time addressing Chinese stakeholders and the public, especially in crisis situations.
--International companies face a dilemma in crisis management. If they bow to pressure from the Chinese government, they can easily come under fire abroad - from the media and customers. But if these companies do not follow Beijing’s suggestions, they risk being attacked in the Chinese media, boycotted by customers, or obstructed in their daily work.
--These developments are creating uncertainty. Foreign companies have to adapt contingency plans and crisis-prevention techniques, and factor into their communications campaigns Beijing’s sensitivity to “misconduct“ that it increasingly likes to instrumentalize.
--At the same time, it is important to document instances of untoward criticism from Beijing, and to raise them with Chinese counterparts though trade associations or government. ...
International companies face increasing reputational risks
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Download PDF
Excerpt:
--Main findings and conclusions. Since 2017, China has criticized ever more openly communication campaigns launched by international companies outside its borders that directly or indirectly address Chinese issues.
--Beijing is using its economic power to assert its own geopolitical agenda or to promote its own initiatives, such as the Belt and Road Initiative (BRI).
--The Chinese government has at its disposal a powerful tool with which it can target foreign companies. It can engender and mute (social) media debate in a very targeted way. At the same time, state control over the media and the internet mean foreign companies have a hard time addressing Chinese stakeholders and the public, especially in crisis situations.
--International companies face a dilemma in crisis management. If they bow to pressure from the Chinese government, they can easily come under fire abroad - from the media and customers. But if these companies do not follow Beijing’s suggestions, they risk being attacked in the Chinese media, boycotted by customers, or obstructed in their daily work.
--These developments are creating uncertainty. Foreign companies have to adapt contingency plans and crisis-prevention techniques, and factor into their communications campaigns Beijing’s sensitivity to “misconduct“ that it increasingly likes to instrumentalize.
--At the same time, it is important to document instances of untoward criticism from Beijing, and to raise them with Chinese counterparts though trade associations or government. ...
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