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China’s nationalists put water firm Nongfu Spring under fire, dousing private sector’s flickering confidence

  • Boycott by vocal internet users over perceived transgressions has put China’s biggest water company, Nongfu Spring, under a firestorm of criticism
  • With nationalist sentiment quick to anger and slow to forgive, many wonder whether other private companies will be next, stifling growth

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Zhong Shanshan, China’s richest man and founder of the Nongfu Spring beverage company, has come under fire by vocal internet users in recent weeks for a number of perceived transgressions. Photo: sohu.com
Mandy Zuoin Shanghai

China’s drinks giant Nongfu Spring, the country’s largest bottled water producer, has become the latest target in a series of attack campaigns from an increasingly vocal constituency of nationalists online, prompting concerns over what effect this group may have on an already fragile private sector.

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The company, helmed by China’s wealthiest individual Zhong Shanshan, has fallen under a wave of criticism for the perceived Japanese styling of its packaging, just days after it came under fire for Zhong’s competition with another water brand and his son’s American citizenship.

After similar waves of nationalist anger befell Western brands such as H&M and D&G a few years ago – damaging their image in the country – a domestic firm is receiving the same treatment.

This reactive trend in online opinion presents yet another challenge for China’s private businesses, even as the government has vowed to support them to jump-start the slowing economy.

With a stated goal of “around 5 per cent” for gross domestic product growth this year, Beijing has made the improvement of the operating environment for private companies a priority, as they represent about 92 per cent of all enterprises in China and play a crucial role in job creation.
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Angry consumers and retailers initiated a boycott of Nongfu Spring’s products after rumours spread the company was using pictures of Japanese religious buildings on its packaging, though the bottler said last week the designs are artistic creations based on a Chinese temple.

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