Is economic protectionism on the rise in China?
That’s the topic of Ariana Eunjung Cha’s story in today’s Washington Post. It starts out with an odd example, however: “I know you don’t know that you don’t know.” Those insulting words, thrown out by a Chinese man to a Westerner, are the punchline of an Internet commercial that ends with a beautiful Chinese bride ...
That's the topic of Ariana Eunjung Cha's story in today's Washington Post. It starts out with an odd example, however: "I know you don't know that you don't know." Those insulting words, thrown out by a Chinese man to a Westerner, are the punchline of an Internet commercial that ends with a beautiful Chinese bride jilting her confused Western fiance for the Chinese hero. The wildly popular video was created by Baidu, a Chinese search engine, to poke fun at its U.S. competitor, Google. It is but one of the growing signs that China is rethinking its stance on foreign companies and investment within its borders. "Gee," I thought, "That's an odd example. There's no government action there -- it's a marketing campaign." To Cha and her editors' credit, they do make this very point at the end of the story: Richard Ji of Morgan Stanley Hong Kong said some companies have used China's new rules as an excuse for their own marketing or strategic shortcomings. He said that in the cases of Google and eBay, the companies' challenges have had more to do with failure to tailor the content of their Web sites to Chinese tastes and needs. In the Baidu commercial about Google, the Western man begins by saying "I know" repeatedly as he stands, smirking confidently, next to his bride-to-be. But after the Chinese man bursts on the scene and the two get into a war of words, the Westerner becomes confused. By mistake, he says, "I know I don't know that I don't know" -- at which point the disgusted bride runs away. So the commercial is "not about nationalism and protectionism," Ji said. "It says that it's localization that gives success. If you localize services, it means you understand the people you are selling to." Read the whole thing. In between this vignette, there's some decent evidence that China is officially wigging out about certain forms of FDI. UPDATE: Thanks to Mitchell Young for pointing to the Baidu commercial on YouTube: The ad is a good example of the difference between economic nationalism and economic protectionism. The ad is clearly nationalist, and designed to foster a "Buy China" mindset, in part through rational arguments that Baidu is better than Google, and in part through cultural tropes designed to make the Western character in the ad look uncool. However, it's not an example of protectionism -- it's not calling for government intervention or relief, it's just trying to beat Google.
That’s the topic of Ariana Eunjung Cha’s story in today’s Washington Post. It starts out with an odd example, however:
“I know you don’t know that you don’t know.” Those insulting words, thrown out by a Chinese man to a Westerner, are the punchline of an Internet commercial that ends with a beautiful Chinese bride jilting her confused Western fiance for the Chinese hero. The wildly popular video was created by Baidu, a Chinese search engine, to poke fun at its U.S. competitor, Google. It is but one of the growing signs that China is rethinking its stance on foreign companies and investment within its borders.
“Gee,” I thought, “That’s an odd example. There’s no government action there — it’s a marketing campaign.” To Cha and her editors’ credit, they do make this very point at the end of the story:
Richard Ji of Morgan Stanley Hong Kong said some companies have used China’s new rules as an excuse for their own marketing or strategic shortcomings. He said that in the cases of Google and eBay, the companies’ challenges have had more to do with failure to tailor the content of their Web sites to Chinese tastes and needs. In the Baidu commercial about Google, the Western man begins by saying “I know” repeatedly as he stands, smirking confidently, next to his bride-to-be. But after the Chinese man bursts on the scene and the two get into a war of words, the Westerner becomes confused. By mistake, he says, “I know I don’t know that I don’t know” — at which point the disgusted bride runs away. So the commercial is “not about nationalism and protectionism,” Ji said. “It says that it’s localization that gives success. If you localize services, it means you understand the people you are selling to.”
Read the whole thing. In between this vignette, there’s some decent evidence that China is officially wigging out about certain forms of FDI. UPDATE: Thanks to Mitchell Young for pointing to the Baidu commercial on YouTube:
The ad is a good example of the difference between economic nationalism and economic protectionism. The ad is clearly nationalist, and designed to foster a “Buy China” mindset, in part through rational arguments that Baidu is better than Google, and in part through cultural tropes designed to make the Western character in the ad look uncool. However, it’s not an example of protectionism — it’s not calling for government intervention or relief, it’s just trying to beat Google.
Daniel W. Drezner is a professor of international politics at the Fletcher School of Law and Diplomacy at Tufts University and co-host of the Space the Nation podcast. Twitter: @dandrezner
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