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Nike CEO: The Chinese Market is Very Important; We Abide By Local Rules

May 24, 2023

Nike CEO: The Chinese Market is Very Important; We Abide By Local Rules

According to a report by the U.S. Consumer News and Business Channel (CNBC) on the 23rd, Nike CEO John Donahoe said that China is one of its largest markets, and the decoupling of the United States from China will harm global trade. "Catastrophic" impact.

Referring to the "increasingly tense geopolitical relationship" between the U.S. and China, Donahoe said global companies must accept risks "everywhere," adding that Nike tries to also abide by "local rules" in the Chinese market, the report said. Also, obey the "global rules."

According to reports, at the first CNBC CEO Council Summit held in Santa Barbara, California, on the evening of the 22nd local time, the moderator raised the so-called risks in the Taiwan Strait and China's position on the conflict between Russia and Ukraine, claiming that this would create serious tension between the United States and China. Built "more tension" between them and asked how Nike would respond.

In response, Donahoe replied that for a company operating on a global scale like Nike, risks are everywhere, and companies must accept this and work hard to open up a route that aligns with their strategy and values.

Geopolitical tensions are now rising, which poses some risks for the business, but he said Nike, like the rest of the industry, has contingency plans in place. He also said, "When the political establishment is in its current state, companies have to stand up, so we are committed to becoming a global company, whether in China or other markets."

Asked if there were any plans to "decouple" from China, Donahoe responded negatively. Decoupling would be disastrous for the U.S.-China or EU-China economies. If you look at bilateral trade flows (data), they have value for each other," he said.

Donahoe said he believes global trade "can almost help promote peace and understanding," which in turn can help boost the economy and improve geopolitical relations. He believes that consumers worldwide and the Chinese, U.S., and European economies can benefit from "balanced trade."

Talking about business in China, Donahoe said that as Nike's third largest sales market, China is very important to Nike. He said that to become a global company, it must act following "local rules" and not violate any "global rules," including the so-called "human rights rules."

"We understand very well that we are Chinese consumers and local citizens of the Chinese team." Donahoe said, "We try to maintain a long-term vision at this stage. We have experienced twists and turns in history. We are fortunate that, We have strong leadership."

For some time, some American politicians have been clamoring for "decoupling" in the international arena, defining Sino-US relations with so-called "strategic competition" and adopting a series of restrictive trade measures and protectionist measures against China. All these actions seriously undermine market rules and the international economic and trade order. , harm others and oneself. China is a favorite investment destination for foreign-funded enterprises. According to the 2023 White Paper on China's Business Environment released by the American Chamber of Commerce in South China, more than 90% of the interviewed companies regard China as one of the most important investment destinations, and 75% of the interviewed companies plan to reinvest in China this year.

According to Mao Ning, spokesperson of the Chinese Ministry of Foreign Affairs, in January this year, China ushered in a good start in attracting foreign capital, and the amount of foreign money used reached 127.69 billion yuan, a year-on-year increase of 14.5%. Foreign-funded companies, including American companies, remain optimistic about the Chinese market and plan to expand their business in China. According to data from the U.S. Department of Commerce, the total U.S.-China trade in goods will reach a record high of $690.6 billion in 2022. She said these all show that China-US trade and investment cooperation is mutually beneficial and win-win. Decoupling and breaking chains, harming others and ourselves, and being unpopular is also unfeasible. No matter how the international situation changes, China's determination to expand high-level opening up and share development opportunities with the world will not change. China welcomes companies worldwide, including American companies, to enter the Chinese market, share in development dividends, and jointly promote world economic growth.

As for the so-called "human rights issue" accusation, China has repeatedly emphasized that the so-called "forced labor" and other claims are outright lies of the century. Excluded from. "The United States is by no means a model of respecting and protecting human rights, but a model of ignoring and destroying human rights." Foreign Ministry spokesperson Wang Wenbin said on the 8th of this month that China called on the United States to deeply examine its serious racism, racial discrimination, and police violence. Stop interfering in the internal affairs of other countries under the banner of human rights, take practical solutions, return the truth and justice to the victims, and prevent the tragedy of Freud and tens of thousands of victims of racism from repeating itself.

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