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Nike Pulls New Shoe Line in China Over Designer’s Support for Hong Kong Protests

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  • Nike canceled the launch of a new line of shoes in China after the Japanese designer of the line posted on Instagram supporting protests in Hong Kong against a proposed extradition bill.
  • The incident sheds light on the dilemma multinational companies face between needing to comply with China’s demands to sell to Chinese markets, but also not wanting to be perceived negatively by more liberal countries.
  • Last year, Mercedes-Benz and the Gap both faced similar experiences, prompting them to apologize to Chinese consumers.

Undercover x Nike Collaboration 

Nike pulled the sale of a new line of shoes in China after the Japanese designer of the line publically supported the protests in Hong Kong on social media, the Financial Times reported Wednesday.

Nike and the Japanese brand Undercover, lead by the designer Jun Takahashi, intended on releasing the limited shoe line this month.

However, the product was withdrawn entirely after Undercover posted a photo on it’s Instagram of posters in Hong Kong fighting against a proposed extradition bill.

The post included the text “no extradition to China.”

Source: Campaign US

Undercover later deleted the post after receiving backlash from Chinese Instagram users, who use VPNs to access Instagram, which is blocked in China. After deleting the post, Undercover reportedly said it said was an “individual opinion” that had been posted by mistake.

YYSports, Nike’s retail partner in China and one of the country’s largest retailers, said they were given “urgent notice” from Nike to stop the launch of the new line. Other Chinese retailers also removed the shoes from sale without explanation.

One online vendor said it withdrew all Undercover brand products because of “special reasons,” but did not give details.

China and Multinational Retailers

A person described as being “close to” Nike told the Financial Times that the event with Undercover probably will not hurt Nike’s sales or revenues in China, as the situation was dealt with quickly and the shoes were designed as a limited-edition collector’s item rather than a mass-marketed product.

Additionally, while the line did not launch in China, it did launch globally on June 21.

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#NIKE x #UNDERCOVER Daybreak sneakers in Black and Green will be released ‪on June 21th (Fri)‬ globally.  NOTE: Purchasing at UNDERCOVER Aoyama is only possible through an advance online lottery. Application period is between ‪June 18th (Tue) 12:00‬ ~ 20:00. Please check the UNDERCOVER website for details (‪undercoverism.com/projects‬)   NIKE x UNDERCOVER Daybreak を‪6月21日(金)‬より販売いたします。  国内Daybreak販売店舗:UNDERCOVER 青山、新宿伊勢丹MENS、阪急MENS東京、GINZA SIX, 阪急MENS大阪、阪急うめだ本館、LUCUA1100、岩田屋本店、仙台、金沢、名古屋、京都店及び、NIKE SNKERS、NIKELAB MA5、DSM GINZA  UNDERCOVER 青山店での購入については、事前にオンライン入場抽選を実施しますので、発売日に店頭にて購入をご希望の方は、アンダーカバーのウェブサイト‪undercoverism.com/projects‬(携帯からはBioにあるリンクより)にて詳細をご確認のうえ、抽選応募フォームよりご応募ください。ご応募受付期間 : ‪2019年6月18日(火) 12:00 ~ 20:00‬  #アンダーカバー #ナイキ

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Regardless, the incident shines a light on the double-edged sword that is selling retail products to Chinese markets. 

On one hand, China is a huge market and brings in a ton of revenue for multinational retailers like Nike. In Fiscal Year 2018, Nike reported more than $5.1 billion in revenue from greater China alone.

On the other hand, if Nike adjusts to the political needs of China, it risks being perceived by more liberal countries as bending to China’s authoritarian requests. This is especially difficult for Nike, which markets itself as an advocate for social causes.

However, it is not only Nike that has had these issues with selling products in China. 

Last year, Mercedes-Benz apologized to Chinese consumers after they posted on their official Instagram account and used a quote from the Dalai Lama, who the Chinese government believes is a dangerous separatist. 

Gap also apologized to Chinese consumers last year after a post on a Chinese social media site showed T-shirts with a map of China that did not include Taiwan, South Tibet, and the South China Sea, all of which China considers as territories that belong to them, but are disputed.

Protests in Hong Kong

Meanwhile, the protests over the proposed extradition bill in Hong Kong have continued intermittently for the last few weeks.

The bill would let the government detain people accused of committing certain crimes and send them to countries or territories that Hong Kong does not have extradition agreements with, including mainland China.

The people of Hong Kong oppose the bill because they are concerned China could use the law to target political activists and dissidents who are critical of the Chinese government.

On June 15, Hong Kong’s chief executive Carrie Lam said she would suspend the bill indefinitely, but not fully withdraw it. The next day, the people of Hong Kong staged an even bigger protest with an estimated 2 million people in attendance.

Since then, the people have still continued to demonstrate, taking to the streets, surrounding and entering government buildings. 

On Tuesday, hundreds of people demonstrated at foreign governments’ consulates in Hong Kong, to call on foreign leaders to address their concerns at the upcoming G20 summit in Japan.

See what others are saying: (The Financial Times) (Business Insider) (CNBC

International

Police Arrest Hong Kong Man for Booing Chinese National Anthem

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The man’s boos were launched during the first time the Chinese national anthem had ever been played for a Hong Kong athlete at the Olympics.


Instulting the Anthem

Hong Kong authorities announced Friday that a man was arrested for allegedly booing and “insulting” the Chinese national anthem while watching the Olympics on Monday.

The unnamed 40-year-old, who identified himself as a journalist, was allegedly watching the Olympics fencing medal ceremony for Hong Konger Edgar Cheung at a local mall. When the anthem began playing, he allegedly began booing and chanted “We are Hong Kong!” while waving a British Hong Kong Colonial flag.

The man’s actions were particularly noteworthy because it was the first time the Chinese national anthem had been played for a Hong Kong athlete in the Olympics. Hong Kongers compete at the Games under a separate committee called Hong Kong, China. The last time a Hong Konger won gold was in 1996 for windsurfing, at which time the British anthem of “God Save the Queen” was played.

Concerns for Freedom of Speech

The man is suspected of breaking the relatively new National Anthem Ordinance, which was passed in June 2020, and has a penalty of up to three years in prison and fines of $6,000 for anyone who publicly and intentionally insults the anthem. The law mirrors one in mainland China, but it has faced considerable scrutiny from increasingly persecuted pro-democracy lawmakers in Hong Kong.

They argue that it tramples the right to free speech, which is supposed to be enshrined in the city’s Basic Law. Hong Kong police, however, say that’s not the case and claim that his actions breach common restraints on freedom of speech. Senior Superintendent Eileen Chung said that his actions were “to stir up the hostility of those on the scene and to politicize the sport.”

Police issued a warning that it would investigate reports of others joining his chants or violating the separate National Security law passed last year.

This incident isn’t the only case of alleged politicization of the Games. Badminton player Angus Ng was accused by a pro-Beijing lawmaker of making a statement by sporting a black jersey with the territory’s emblem. The imagery was very similar to the black-and-white Hong Kong flag used by anti-government protesters.

Ng countered that he wore his own clothes to the event because he didn’t have sponsorships to provide jerseys and he wasn’t authorized to print the emblem on a jersey himself.

See what others are saying: (Inside) (Al Jazeera) (CNN)

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Canadian Catholic Priest Says Residential Schools Survivors Lied About Abuse

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The Roman Catholic Church is facing considerable backlash across Canada for its treatment of indigenous peoples in the residential school system, along with its subsequent efforts to downplay the problem.


Priest Sparks Outrage

Father Rheal Forest was put on forced leave Wednesday following remarks he made over a weeks-long period starting July 10 in which he doubted victims of the country’s infamous residential school system.

Residential schools were a system of schools largely for indigenous children that were mostly run by the Catholic Church with federal government funding. The schools were notoriously cruel and long faced allegations that children had been abused or went missing under their care.

To date, over 1,300 unmarked graves have been found at four former residential schools across Canada, a fraction of the over 130 that used to exist.

Forest, of the St. Boniface archdiocese in Winnipeg, was standing in for a couple of weeks while the main priest at his church was away. During that time, Forest told parishioners that victims of the residential schools, particularly those sexually abused, had lied.

“If [the victims] wanted extra money, from the money that was given to them, they had to lie sometimes — lie that they were abused sexually and, oop, another $50,000,” he said.

“It’s kind of hard if you’re poor not to lie.”

In that same sermon, he also added that during his time with Inuit groups in the north of the country, most had allegedly said they appreciated the residential school system. Instead, he said they blamed any abuses on lay people working at the facilities rather than priests or nuns.

Forest’s comments drew a ton of backlash, prompting the archdiocese to place Forest on leave. A spokesperson for the archdiocese said that the institution “completely disavow” Forest’s comments, adding, “We very much regret the pain they may have caused to many people, not least of course Indigenous people and, more specifically, survivors of the Residential School system.”

Overall, the archdiocese has attempted to apologize to indigenous communities for its part in the residential school system, with Archbishop Albert Legatt saying in a video that the way forward was by “acknowledging, apologizing, and acting” on terms set by indigenous groups.

Church Allegedly Kept Money From Victims

Forest’s views and subsequent dismissal aren’t the only public relations scandal the Roman Catholic Church faces in Canada.

According to documents obtained by CBC News, the Church spent over a decade avoiding paying out money to survivors per a 2005 agreement. At the time, it, alongside the protestant churches that also ran some residential schools, agreed to pay an amount to victims of the schools in the tens of millions.

Instead, according to an internal summary of 2015 court documents, the Catholic Church spent much of that money on lawyers, administration, a private fundraising company, and unapproved loans. It seems that some of this was technically legal, such as a promise to give tens of millions back via “in-kind” services; however, there was no audit completed to confirm that these services actually happened or to prove the alleged value of the services. This led to doubts about whether or not they were done effectively.

The Catholic Church was unique among the signatory churches in the 2005 agreement with its efforts to avoid paying victims. All of the other denominations paid out their sums many years before without issues.

While priests such as Father Forest have supported the Church, there has been internal backlash. Father André Poilièvre, a Saskatoon priest and Order of Canada recipient, said the Church’s actions are “scandalous” and “really shameful,” adding, “It was a loophole. It might be legal, but it’s not ethical.”

With these latest revelations, widespread anger at the Church has triggered allegations that indigenous groups are behind a spree of church burnings across the country.

The entire situation is likely going to continue to smolder as a government commission set up to investigate the schools estimates there will be thousands of more unmarked graves found across Canada.

See what others are saying: (CBC News) (The Guardian) (CTV News)

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Tokyo Sets Back-to-Back Records for Number of Daily COVID-19 Cases

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Some positive cases were detected among people attending the Olympic Games, including a handful of athletes.


Cases Going Up

The Tokyo Olympic Games found itself in more controversy on Wednesday after Tokyo experienced a record number of daily COVID-19 cases for the second day in a row.

On Tuesday, the city recorded 2,848 new cases of the virus, passing the 2,500 daily new case threshold for the first time since the pandemic began. Then on Wednesday, it shattered the record again with 3,177 new COVID-19 cases.

At least 155 of those new cases were detected among people attending the Games, including a handful of athletes, which contrasts Prime Minister Suga Yoshihide’s promise that the Olympics wouldn’t be hit with the virus. The spike in new cases has largely been attributed to the delta-variant, something that many countries are dealing with around the world.

Nishimura Yasutoshi, a Japanese economic minister, told a parliamentary panel this week that COVID-19 cases are expected to continue rising for at least a few days. He also explained that many people may have delayed getting tested last week due to holidays, therefore inflating total daily new case numbers.

Governors in prefectures around Tokyo have moved to ask the government for states-of-emergency, which Tokyo is already under.

Doubts About Government Response

The prime minister said in a press conference on Tuesday that “the government has secured a new drug that reduces the risk of serious illness by 70 percent,” adding, “we have confirmed that this drug will be used thoroughly from now on.”

However, he never actually mentioned what drug he was referencing.

“In any case, under these circumstances, I would like to ask the people to avoid going out unnecessarily and to watch the Olympics and Paralympics on TV,” Suga continued.

He also stressed that canceling the Olympics amid the outbreak was completely out of the question, although there have been continued calls from the public and opposition lawmakers for just that.

Beyond refusing to cancel the Games, Suga is facing backlash for refusing to enact strict state-of-emergency protocols. Currently, the measures in Tokyo are almost all voluntary and consist of asking people to stay home, along with requesting restaurants that serve alcohol to completely close and telling all others to shut down by 8 p.m.

See what others are saying: (Reuters) (NPR) (The Wall Street Journal)

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