Olympic sponsors are walking a tightrope ahead of the Beijing Winter Games next month, as growing geopolitical tensions push them to reconsider their engagement without hurting China.
Last month, the White House called for a diplomatic boycott of the Games as a protest over human rights violations in China’s western Xinjiang province, which Washington accuses Beijing of perpetrating.
This has contributed to the pressure on corporations including Coca-Cola (KO), Intel (INTC), Visa (V), and Airbnb, who have received demands in recent months to terminate relations with the event due to Xinjiang.
Some lawmakers have accused corporations of hurting their nations’ capacity to send a strong message to Beijing through diplomatic boycotts. Critics also question the utility of supporting an event that will not sell tickets to the general public owing to pandemic restrictions.
However, as the world’s two greatest economies compete for their attention, business leaders have few viable choices. Stay silent, and you risk alienating customers in places like the United States. Pull back and risk jeopardizing their prospects in the big Chinese market.
International corporations are well aware of the dangers. Nike (NKE), H&M (HNNMY), and other Western businesses faced a boycott in China last year as a result of their stance against the suspected use of forced labor in Xinjiang. In 2019, statements made by the then-general manager of the Houston Rockets in favor of pro-democracy protesters in Hong Kong endangered billions of dollars in NBA-China business.
According to Mark DiMassimo, the founder and creative director of DiGo, a New York advertising firm, sponsors appear to be downplaying their engagement, at least in the run-up to the Games.
“There is no traditional marketing of their Olympics ads ahead of time. You’d expect to see it at this time, but we’re not “He stated. “I believe they are attempting to avoid being the focus of the tale.”
