by Global Risk Insights
Financial Sense
Following The Hague’s ruling on the South China Sea, Chinese netizens have called for protests and boycotts against American companies. How concerned should investors be about anti-American sentiment among Chinese consumers?
The Hague’s ruling against China over its claims and conduct in the South China Sea (SCS) has led to several nationalist protests against American businesses in China. This is not the first time international disputes have generated a backlash against US business interests in China; most famously, the NATO bombing of China’s embassy in Belgrade led to attacks on American businesses and boycotts of US brands. It is important to note what investors can learn from both recent protests and unrest in 1999 about the risks posed by nationalism to US businesses in China.