As Chinese state-owned funds step up their global investment initiatives, they may very well face a xenophobic backlash in the U.S. and elsewhere. Americans are already apprehensive about Chinese ownership of so much national debt – and the idea of increased Chinese ownership of American assets could compound that anxiety if the proper inroads are not established.
While protectionist messages will likely figure prominently in the public relations strategy employed by opponents of Chinese investment, such tactics will only scratch the surface if the impending battles for control of American companies turn as ugly as the recent takeover of Anheuser-Busch by Belgian brewer InBev.
Chinese support for the Bashir regime in Darfur will come into play. China’s questionable environmental practices will be on the table. And China’s human rights record will almost certainly provide fodder for those eager to doom the nation’s investment deals.
As such, China must nurture the greater sensitivity to western news media that was first apparent in the aftermath of May’s devastating earthquake. It must establish its credentials now among American audiences so that detractors will have to swim upstream against the perception it has established.
As Chinese sovereign wealth funds look to expand their reach, they must survey the landscape and do the necessary advance work to ensure that it is as welcoming as possible.
Steve Ellis, Senior Vice President of Levick Strategic Communications and manager of the firm’s International Practice Group, has headed U.S. communications efforts for foreign government clients in the Middle East, Europe, Asia, South America, and the Caribbean. Throughout his career, he has counseled high-level elected and appointed officials on media relations, internal communications, bilateral relations with the U.S. government, privatization, and freedom of the press initiatives.
