SCG’s rise from sporting anonymity to global football influencer has taken place at breathtaking speed. Yet such rapid growth should not be a surprise, as the experiences of other industrial sectors have demonstrated over the last two decades. Typically, a state edict in China serves as a rallying call to private industry that it should engage in activities consistent with the national interest. In turn, the response of corporations like SCG has normally been to comply, in the meantime pursuing its own commercial goals. As such, SCG is a quintessentially 21st century Chinese corporation, combining political savvy with business acumen.

Managing one’s relationship with the state is a crucial part of the Chinese business operating environment. This has to be achieved at the same time as get to grips with the rapidly-changing nature of China’s domestic economy. Indeed, the rise of its middle class (and their growing disposable income), allied to the population’s voracious appetite for digital content and social media, are some of the reasons why SCG has moved so decisively to secure the EPL and La Liga broadcasting rights deals.

China’s drive towards becoming a football superpower is reminiscent too of its desire to build integrated industrial supply-chains, which enables the country and its businesses to exert control at all levels of production. In turn, this brings a sense of certainty and security to China’s industrial activities. SCG is one of the most prominent examples of this in sport; indeed, one has to consider the implications of an electrical retailer controlling the sale of a player (say, Jiangsu) and the purchase of a player (say, Inter Milan), while at the same time owning a stake in an agency business that represents a player moving between the two clubs.

This helps generate further insight into SCG’s latest apparent relationship with the EPL. For an electrical retailer to be able to own and control the content which forms the basis for a football fan’s consumption experience on a television, laptop or mobile device (which they may have bought at an SCG outlet), confers upon the company significant strategic advantages.

As football and the world of business in general ponder such matters, it is important to remember that SCG is not alone in its pursuit of broader commercial and political goals through football. Another Chinese business, Wanda Corporation, is a further example of this, its portfolio characterised by a relentless pursuit of investment properties that align the organisation’s involvement in the sports and entertainment industries.

In the same way as SCG, Wanda has rapidly created a horizontally- and vertically-integrated business that has ownership interests at various levels of its supply-chain. This is the Chinese way. Therefore, those who simply see SCG’s deal with the EPL as yet another financial windfall for English football, need to think again. China takes influence, power and control very seriously. Hence, SCG’s deal with the world’s leading football league should be seen more as a portent of other investments to come than simply just a headlining broadcast deal.

This piece is published in partnership with Policy Forum.net, an academic blog looking at public policy in Asia and the Pacific. The website is based at the Australian National University.