Olympic boycotts 'threaten world economy'

Carrefour has been singled out by many Chinese protesters

Peter Mandelson has warned the continuing ‘China bashing’ and ‘protectionism’ could have disastrous repercussions in world trade. Speaking in Brussels he told the European Parliament's trade committee that he did not underestimate the political pressures on governments, but he said such policies were unhelpful [BBC / Xinhua]. Mandelson also called threats to boycott the Beijing Olympics a “political gimmick”, and cautioned against trying to humiliate China.
China is now blamed for everything from human rights abuses, war and genocide to pollution, abortion and rising food prices. But while China is tackling these issues, their efforts are often not seen to be sufficient to appease Western observers. And besides there being many problems associated with China, they are a part of the global village. By calling for boycotts and angering 1.6 billion people, the West plays a dangerous game. In The Times [Friday 18/04/2008] Mike Hume describes the dangers of what he calls the new Olympic sport of China bashing.
“The Olympic furore is underpinned by fears about the rise of China at a time when, if we did boycott Chinese goods, there really would be a recession on the high street. In a saner world it would surely be seen as a good thing that the Chinese economy is booming - and subsidising the West - and that China is investing in roads, railways and hospitals in Africa; makes a change from UK charities sending the odd goat” [The Times].

The concern is well founded. Writing in the Ottawa Citizen, Aileen Mccabe describes the threat of boycotts as being a ‘two-way street’. The Internet in China is jammed with calls for a boycott of French products and, in particular, the French supermarket chain Carrefour S.A., which has more than 100 outlets around the country. The calls have followed what many Chinese people see as ‘vile’ and ‘disgraceful’ scenes in Paris where pro-Tibetan protesters attacked a disabled Olympic torchbearer [BBC]. Speaking at a forum in Britain last Friday, Singaporean Prime Minister Lee Hsien Loong warned ominously that there could be long-term repercussions. "The outrage in China, especially among the young, can be read on the flooded Internet bulletin boards, all carrying virulent anti-foreign sentiments," he said. "Pity they are in unintelligible Chinese ideographs. Were they in the English language, young Americans and Europeans would realize that these displays of contempt for China and things Chinese will have consequences in their lifetime, well beyond the Olympic Games."

At a time when Europe is trying to boost trade relations with China, Peter Mandelson warned of the possible backlash. "Some Europeans appear to assume that a course of direct confrontation in connection with the Olympics and Tibet serves Europe's interests, and indeed Tibet's ... but we will not be able to dictate the solutions to China's problems," the EU trade commissioner said yesterday, "Whatever our political differences, our interdependence remains a central fact of the global political economy".

And he is not alone in his concerns. Katinka Barysch, of the Center for European Reform in London, say it is difficult to know whether a Chinese boycott of European goods will be effective. "It's very difficult to foresee at the moment how many people would join such an unofficial boycott. The European trade commissioner has just warned of the tit-for-tat spiral - one side starts boycotting and then the other side starts boycotting and then before you even know it, a highly profitable trade relationship is disrupted" she said, "I mean you cannot not engage with China. It's a rising superpower. It's a hugely important market. We have disagreements that we have to speak very openly about. There's no way we can ignore or isolate China" [VOA].

The row looks set to intensify as protests against the French supermarket chain gain momentum. Today Reuters reported that protestors burned a French flag and shouted slogans outside one branch in Qingdao. Smaller demonstrations have also been seen at a number of other branches in Beijing. But the big day of action comes in less than two weeks when a May 1st boycott on the store is expected.