A January 2018 Washington Post article revealed the lengths that American and other foreign companies will go to maintain good relations with China, the world’s second largest marketplace. Marriott apologized because a US-based employee “liked” a tweet favoring Tibetan independence. Audi apologized because at an annual meeting it showed a map of China with Taiwan and Tibet as separate from the mainland. Delta airlines, Quantas airlines, and Medtronics all had to apologize because they showed listings of Taiwan, Hong Kong, Tibet, and Macau as separate countries. And these apologies weren’t mere mea culpas—they were acts of obsequious groveling. Such activity would have been unheard of a decade ago, however, that is the way business is done today.
China has grown substantially in its four leadership power sources over the last two decades. It has long had the world’s largest population. It became the world’s second largest economy in 2010. Its military spending has grown steadily since the mid-1990s and is now second only to the US. And it has arguably the most forward-thinking foreign reach, having had a presence in Africa for decades and now expanding influence to other parts of the world. It seems quite aware of the power sources and quite adept at managing them.
Part of that management is knowing how to limit the influence of rivals. While China allows foreign brands into the country because it is good for its economy, it seeks to limit their influence. Foreign corporations have to adhere to its version of history and geography—foreign companies cannot show any indication that Taiwan is separate from China, for example. If such a thing happens, it must be corrected immediately, and a full and open apology is required to atone for the insult.
China knows how the leadership game is played, and it is well-positioned to assume a dominant role in future world politics. Other nations would be wise to become savvier at playing the game as well.
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