Why consumer boycotts of US brands in China might hit Chinese companies the hardest
Stephen Vines says if a patriotism-fuelled boycott of US products in China gets under way, the Chinese companies behind these brands would be the worst affected
The answer in the case of American consumers is almost certainly not because awareness of Chinese brands is extremely low, and although Americans buy vast quantities of Chinese-made goods, many do so with little awareness of where these goods come from, not least because the final assembly of goods essentially made in China often takes place in the US.
A survey likely to gladden the hearts of trade warriors in Beijing found that a clear majority – 54 per cent of respondents – drawn from 300 Chinese cities said they would “probably” or “definitely” boycott US-branded goods in the event of a trade war; only 13 per cent said they would not.
Although this did not make the headline when the results were published, the survey found that the most likely boycotters were aged 25-29, had lower middle incomes and lived out of the major metropolitan areas. In other words, people who were less likely to be the main customers for US brands.
Watch: Are Chinese consumers less willing to buy American goods
So, a boycott of the more obvious targets would indeed impact the revenues of US companies, but they would more directly affect Chinese companies.
This, of course assumes that a boycott ever gets under way. That is not a given and it is interesting to note that Chinese state-controlled media, which egged on the South Korean boycott for purely political reasons, has so far not engaged in a similar campaign in respect to US goods and services.
This could still happen, but the more likely targets for Chinese boycotts are major products, such as aircraft, with purchases directly linked to government decisions.
Watch: Trade war threatens China’s love for American barbecue
All that is certain is that the longer this trade war goes on, the more disruption it will bring and many of the victims will be bystanders who may have imagined they would be untouched by the turmoil.
So what’s the future for diet-busting burgers and fried chicken alongside over-roasted and heavily sweetened coffee drinks in China? Maybe if it does nothing else, the trade war will provoke a healthy pause and bring Chinese fast food buyers to their senses.
Stephen Vines runs companies in the food sector and moonlights as a journalist and a broadcaster