America’s Corporations Shouldn’t Bow Down to China

This month marks the 100th anniversary of the Chinese Communist Party. While many of the people of China celebrate, the rest of the world – and many in China as well – remember the atrocities that the party has committed over the last century. One group that conveniently seems to have forgotten them are American corporations. Many of them consistently make business deals with the CCP and praise the work that they do. The latest example of this is Warren Buffet and his business partner Charlie Munger. 

In an interview with CNBC’s Becky Quick, Munger was quick to praise China’s economic system saying that it’s financial regulations on businesses are something worth emulating.. An example that he used to illustrate his point was the recent crackdown by the Communist government on The Ant Group, a subset of billionaire Jack Ma’s Alibaba Group. 

Ma is a former English teacher who founded Alibaba in 1999. Since then it has grown into one of the largest e-commerce businesses in the world, effectively making Ma the richest man in China. In the Fall of 2020 however, that changed when Ma gave a speech that was critical of China’s financial regulations. A few days later, the Chinese authorities killed his new fintech business venture, The Ant Group, which was meant to bring banking services to areas of China that did not have it. They brought him in for “regulatory interviews” and he has scantily been seen in public since. 

Any government responsible for the near-disappearance of one of it’s most famous faces – or anyone for that matter – does not deserve to be praised. Ma was looking to help the Chinese people and enhance their lives by bringing them easier access to financial resources. 

He’s not the first one who has tried to change the Chinese system. There is a long list of major players that built successful businesses and tried to defy the current financial system in China. All of them failed due to government interference.   

The problem that the Chinese government has with these ventures is that they are innovative. Innovation disrupts the old order and brings change. And most people don’t have a problem with change if it is making everyone’s life better. But, Munger seems to disagree.

“[Ma] basically gave a speech where he said to a one party state, ‘Well you guys are a buncha jerks, don’t know what you’re doing. And I know what I’m doing and I’m gonna do it better.’” Munger said. 

Munger called Ma a “swinger” and said that the CCP was absolutely in the right to silence him. 

Munger then said, “I don’t want…all of the Chinese system, but I certainly would like to have the financial part of it in my own country.” 

A major American businessman openly advocating for communist style regulation is not something basically anyone would get behind. Unfortunately, supporting China has become more commonplace in recent decades. As China’s economy has grown more and more powerful, many American corporations have increasingly ignored many questionable moves by the Chinese government in order to continue to do business in their country. 

One prominent example is the NBA. In 2019, in the midst of the Hong Kong protests, Houston Rockets general manager, Daryl Morey, tweeted his support for the demonstrators. The tweet faced backlash from the Chinese government and Morey quickly deleted it while he and the NBA tried to distance themselves. But the Chinese government came out and condemned the tweet saying Morey had “fouled” and that he would “have to pay the price.” 

Another example is The Walt Disney Company. When the live-action version of Mulan was released last year, Disney immediately came under fire for thanking the Xinjiang region of China for allowing them to film there. Xinjiang is the region where the Chinese government has been accused of violating human rights by holding Uighur Muslims in “reeducation camps.” Disney was accused by many on social media for turning a blind eye to human rights abuses in their efforts to appease one of the largest film markets in the world. 

Munger’s view is apparently nothing new in corporate America. Rather, it’s just the latest in a long line of American businesses bending the knee to China. The only difference is that he is the first to openly admit that communism is what he desires. 

Is Munger’s admission a sign of things to come for corporations? It shouldn’t be. American corporations should stand for American values. And they should especially condemn any violations of human rights. 

No government that abuses its citizens should receive business support. If American corporations want to continue to receive support from Americans, they should reconsider who they decide to support.