Political protest drives Japanese Companies crazy!

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Anti-Japanese protests have taken place in cities across China after Japanese nationalists raised their country’s flag on disputed islands. Thousands of people took to the streets in Shenzhen, Guangzhou and a number of other cities demanding that Japan leave the islands in the East China Sea.(Source: bbc)

It also leads to the increasing sales of anti Japan goods such as underwear with China bullying Japan on it.

The deteriorating Sino-Japan relationship has inevitably spread to its economical relationship.

We can see it from a post from a Chinese netizen:

(from now on, I will keep away from made in Japan, invented in Japan or anything sold by Japanese, including MSG, LED, instant noodles, Karaoke, USB, Blu-ray disc, LC TV or display, PS3, Nintendo, batteries, laptop, digital camera, convertible frequency air-conditioner, automatic mah-jong table, 3G phone, printer, rice cooker, instant chopsticks, inflatable partners and so on)

Anti Japanese goods can hardly destroy the economy of Japan, but it can greatly influence it.

According to a report from a Japanese Company Factfinder, Teikoku Databank, more than 80% Japanese companies worry about their business in China since the anti-Japan protest in April. One –third Japanese companies planning to develop in China are considering postpone. 18.3% Japanese companies have already suffered side effect from the protest.

Growing destructive power

The great concern of Japanese companies shows thedestructive force destructive force destructive force of protests. What’ s more, the force is getting stronger and stronger.
As reported in 2005 by FTChinese, the protest that year failed to greatly influence the sales of ASAHI. While in 2010, the protest broke out because of issues of Japanese history textbook controversies. ASAHI was said to support the distortion of the history. Although the company claimed to be innocent of this, that protest caused many chain stores, restaurants, bars to stop selling ASAHI and return to the company. A report conducted by Wangyi also shows 98% netizens say no to ASAHI.

even Toyota police car has been turned over

even Toyota police car has been turned over

From the protest this time, we can also see a lot of Japan cars been turned over. It caused a lot of panic among Japanese car owners. Maybe the protestors are not the target customers of those Japanese car makers, but they scare those real potential customers away.

Most Protestors are young, jobless people

As reported by Nikkei News, although the issue of the protest this time is islands dispute, people’s discontented mood is also an important reason, explained by a Chinese government official. The official also said that most protesters are from 20 to 30 years old young people in coastal area. The enormous employment pressure is the main reason to their discontented mood.

In fact, not only Japan, but also other countries suffered side effect of protests such as US when US bombed China Embassy in Yugoslavia and France when Beijing Olympic torch relay was disturbed. The destructive power of protest can easily destroy a company’s reputation. And it’s almost impossible to avoid. What makes it even worse is there’s no way to predict it.

It tells those foreign companies that when developing business, they also need to keep an eye on the sensitive political nerves of some Chinese.

What will you do when there breaks out a protest against your country in China?

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