From Apple to the NBA: the brands that have bowed to China, amid Hong Kong pro-democracy protests
Since the Houston Rockets NBA furore, Apple pulled a controversial app and Activision Blizzard sacked a gamer, while earlier Versace, Coach and Givenchy all pulled T-shirts that were ‘offensive’ to China
Global companies with interests in China have long trodden carefully on the subjects of Xinjiang, Tibet, Taiwan and Tiananmen Square. On these issues of sovereignty, both the Chinese government and Chinese consumers have punished disagreement with the official line.
There is much at stake. China has become the world’s largest market for luxury goods. This year, according to researchers eMarketer, it will overtake the US as the world’s largest market for all kinds of consumer goods combined.
Hong Kong has now joined these four off-limits subjects – a mark of how seriously its ongoing and violent protests are being taken. These are the companies that have fallen foul of China on the issue of Hong Kong, together with the consequences they have suffered, and their efforts to atone.
NBA
On Sunday, October 6, the general manager of the Houston Rockets, Daryl Morey, fired off a tweet supporting Hong Kong’s pro-democracy protesters. Quickly deleted, it included the words: “Fight for freedom, stand with Hong Kong”.
Two days later NBA commissioner Adam Silver said Morey was entitled to express his own opinions, citing the league’s value of freedom of expression.
The NBA’s business in China was said to be worth US$4 billion annually. China’s state broadcaster CCTV then announced it would suspend broadcasting of all Houston Rockets games, along with the NBA’s preseason games in China. Tencent, which streams the games, followed suit.
By Wednesday, October 9, all of the NBA’s official Chinese partners, including Changhong, Anta Sports and Ctrip, had suspended ties. Houston Rockets merchandise has been pulled from stores across mainland China.