My chosen topic is “How Nike influences the economy of China by

My chosen topic is “How Nike influences the economy of China by complying or resisting China’s FDI rule”. My transnational corporation of choice is Nike, a US-based TNC specializing in apparel and footwear ranging from T-shirts to sneakers. The company’s products are regarded as a status purchase owing to the product’s high quality and designer goods. Nike has set up its TNC companies in various countries, but its operations in China attract significant attention owing to the mixture of controversy and productivity. Nike has also been operating in China for over 35 years since 1981, but Nike’s significance in China was noticed during the 2008 Olympics when Nike’s bid to be part of the sports was embraced globally (De Kloet, Chong, & Liu, 2008). Nike’s presence in China has grown marked by its dominance over Shanghai, the TNC’s periphery’s location.
China as Nike’s host, has a stable economy. China has been ranked among the top countries with the fastest-growing economies, as reflected in its gross domestic product growth of close to 10%. The annual GDP growth rate is high because China has invested in balancing its exportation and importation and foreign direct investment from other countries. As of 2020, China’s Foreign Direct Investments grew by 6% to make up $149 billion from USD 141 billion in 2019 (Santander, 2022). This is a clear indicator of stability, especially with the recent case of the COVID 19 outbreak that has shaken economies in different countries.
The following are two academic sources relevant to my analysis of Nike’s presence in China:
Mashan, T., & is a Master’s, T. M. (2021). “Dear Nike, Just Don’t Do It!”: A Transnational
Digital Connective Action on the Issue of Forced Uyghur Labor at Nike Sweatshops in China.
The article will help analyze how Nike has had controversial moments in China, ranging from issues with forceful labor that has almost destroyed the TNC’s relationship with China.
1. Fan, J. P., Morck, R., Xu, L. C., & Yeung, B. (2009). Institutions and foreign direct
investment: China versus the rest of the world. World development, 37(4), 852-865.
The article will be used to depict how rules influence FDI. The report will offer an analysis of China’s rule in comparison to laws held in other countries. The article will offer a comparison of whether China’s approach to FDI is correct or incorrect for its economy.
2. Qiu, L. D., Zhan, C., & Wei, X. (2019). An analysis of the China–US trade war through the lens of the trade literature. Economic and Political Studies, 7(2), 148-168.
The article will be used to highlight how the US-China trade war has affected FDI in and out of China. The article highlights the various steps China has implemented to maintain superiority over US, which will be analyzed to determine their impact on TNCs such as Nike.
My goal for the study is to analyze how Nike has grown its presence over the years in China. This will include assessing the challenges it had to overcome and the steps it implemented to eliminate such barriers. The topic will seek to analyze how such steps to maintain stability in China have influenced the Chinese economy, either positively or negatively. The topic will also seek to identify the difference between Nike’s TNC footing in China in the past and in recent years. This is because of changes to the global economy and practices, especially with China striving to emerge as a top country alongside countries such as the US. I will assess how US-China rivalry has impacted Nike by either causing a divide or forcing the company to use different business approaches.
De Kloet, J., Chong, G. P. L., & Liu, W. (2008). The Beijing Olympics and the art of nation-state maintenance. China aktuell, 2, 5-35.
Santander. (2022). Foreign investment in China – Santander Trade.