https://www.wsj.com/video/free-speech-vs-chinese-market-us-companies-face-tough-choice/92AFA903-5523-4023-B51C-2111B45A24EA.html
https://in.ign.com/hearthstone-heroes-of-warcraft/140306/feature/fans-pledge-to-boycott-blizzard-over-hearthstone-pros-ban
A few weeks ago two large companies, the NBA and Activision-Blizzard, came under fire for stopping their employees and players from speaking out about the ongoing Hong Kong protests. The decision from both of these companies has resulted in massive blowback from their respective audiences as protests were staged and Blizzard employees even walking out in support of Hong Kong protestors. The main issue that has been brought up because of these protests has been the necessity to favor national values over profit. What is going on in China right now is a civil rights catastrophe, but large companies restrict their players from complaining because of the possible repercussions from the Chinese market. For years almost every type of media has worked with the Chinese government in order to allow their products to enter the market. In movies and games, it usually involved removing parts of the story or game to fall in accordance with China's strict policy. For over a decade Activision-Blizzard has been running a separate version of their game World of Warcraft that cuts all of the bones, blood, and references that go against China's standards. This calls into question the morals of companies like Activision-Blizzard because of their complacency of China's actions in order to enter their billion-person market. People are demanding that lines are drawn in the sand to withdraw out of the Chinese market until their civil rights issue is properly resolved to make a statement that they are not okay with China's actions. Activision-Blizzard has already made a step with an official apology and reversing the decision that caused the outcry in the first place. But this is only the first step in showing that the rights of people are more important than the buck.
Do you think companies should withdraw from the Chinese market?
Can and should the government require U.S. companies to stop trade with China?
What would your response be if you were the NBA or Activision-Blizzard?
The U.S. government could technically require companies to stop trade with China by imposing an embargo. However, this would be detrimental to our economy. So many companies depend on the cheap labor and manufacturing processes in China to create products. Companies outsource manufacturing (like Apple and many others) to China because of the inexpensive manufacturing. If the government imposed an embargo, this would create many complications. There are other avenues that the U.S. can go through to support Hong Kong that would not have as large of an effect on the economy.
ReplyDeleteMy response if I were the NBA or Activision- Blizzard would be to advise my employees to restrain from publicly commenting on any political situation. However, it would be alright if they commented on their own, just not under the company umbrella. It would be best if companies refrained from politics because they are separate entities and should be treated as such.
ReplyDeleteI believe companies shouldn't withdraw from the Chinese market because billions of dollars are at stake if we do. While their is some serious backlash from American consumers regarding U.S. support, I believe the negative effects on our economy are too great to risk our trading relations to China.
ReplyDelete1. While the U.S. government could stop trade altogether with China, it would be incredibly damaging. The bulk of American companies profit in China and will continue to invest in China because global growth is centered there. If American companies want to be global companies, they need to be in China. Some people are concerned with the bilateral trade deficit, but the reality is companies are in China due to their rapidly growing middle class. Therefore, companies should not withdraw from China due to China's role as a global power, as well as a pillar of global trade.
ReplyDeleteWhile it is in the U.S government's power to stop all trade with China by imposing an embargo, it would not be a good outcome overall. Our economy relies on China's market as well by the population of US companies used. Many people would believe a majority of all business is in China so why would the government restraint US companies from that big of a market. There would also be many problems that would arise from this such as manufacturing companies and natural resources.
ReplyDelete2. Technically the US government could mandate that all trading agreements with China be cut off, but it would be extremely difficult to cut off trade with China since China is where we get most of our imported goods from. The US trade deficit with China was around $418 billion last year alone. This NBA and Activision-Blizzard conflict alongside China's growing patterns of a controlling government are why it's now more important than ever that we make careful decisions about how to address our trading relationship with China, because we don't want to lose our biggest trading partner in the world, yet we don't want their economic issues to interfere with ours.
ReplyDeleteMorally, I believe US companies should withdraw from the chinese market due to corrupting influences that the chinese market has. That said, I believe no companies will actually withdraw from the Chinese market and if the United States government did so, that would spark a great economic decline. The Chinese market is extremely valuable to our economy so if the government did anything to limit international relations, the trade war between the US and China would escalate therefore worsening the economy for both countries. The best solution to the current issue to restrain international political issue and be sure that all are being treated fairly regardless of their stances.
ReplyDelete1. The US can require US companies to stop trade with China, however it would hurt our economy. Many companies in our country rely on China for cheap labor and the Chinese market. Although it would make a statement to China, there are other ways to address the situation with Hong Kong instead of through the economy.
ReplyDeleteI think that withdrawing from the Chinese market would not positively impact our economy, and would make everything in the US more expensive. While I believe that we should not withdraw from the market, I do believe that what Blizzard did was also a threat to our democracy. I believe that there should be a balance between keeping a good relationship with China for the good of the market, but not to the extent that will limit or hurt our democracy. There must be boundaries set, and our values have to come before any economic gain.
ReplyDelete1. I don't think it is a good idea for US companies to withdraw from the Chinese Market because a trade with Chinese is a significant source of the the US's GDP and is very important to the stability of our economy. Cutting off relations with China would do more harm than good in the long run and would be a difficult decision to reverse, especially because of the weakening relationship under President Trump.
ReplyDelete1. I believe that withdrawing from trade with china would hurt our economy, and it would be incredibly difficult to maintain a stable economy. For better or for worse, our economy and market relies too heavily on trade with China to just cut it off, despite the moral implications. If we were to cut off trade with China, our GDP would drop and it would cause a lot of economic unrest. There could be other less damaging solutions such as tariffs that could be put in place.
ReplyDelete#2 Not only can the government require US companies to stop trading with China, it has already taken steps towards this. As part of the ongoing trade war with China, the United States has accused Chinese tech company Huawei of working against our national security interests by violating our sanctions against Iran. The government subsequently blacklisted Huawei, preventing US tech giants such as Google, Intel, and Qualcomm from supplying any products to the Chinese company. While instituting a complete embargo against our largest trading partner would be ill-advised, leveraging the dependency of international companies on Silicon Valley could prove to be an effective strategy in achieving our foreign policy interests.
ReplyDeleteOur government could require U.S. companies from trading with China, but the effects would be detrimental. Our economy is fairly dependent on our trade with China as we purchase many goods from China and many companies have factories in China because labor is cheaper there. If trading were to stop with China, we would not have any place to deliver our goods to, we would not be able to purchase goods from China, and many companies would lose money through labor.
ReplyDelete1. If the companies were to withdraw from the Chinese market, it would hurt the companies and the economy as a large part of their profits come from China. The companies are not at fault for China's strict censorship laws and it is understandable why they would change their products to cater to a larger audience. However, companies should not restrict their employees from speaking about the protests, regardless of whether they support China or the Hong Kong protesters.
ReplyDelete