Wiktor Wise
In 2016, General Electric sold its appliance division to the Chinese company Haier for $5.4 billion. This sale sparked controversy on social media, with some users expressing concern over the acquisition of an American company by a Chinese buyer. However, it's important to note that Haier only purchased GE's appliance business and not the entire company. While this deal highlights the increasing Chinese investment in the US economy, it also raises questions about the perception of foreign companies in China, especially in light of the country's history of ethnic tensions and discrimination. China has been criticized for its treatment of Uyghurs and other ethnic minorities, as well as for discrimination against Muslims and Africans. As foreign companies navigate the Chinese market, they may face challenges related to cultural differences and the country's complex social dynamics.
| Characteristics | Values |
|---|---|
| Country where discrimination is prevalent | China |
| Company facing discrimination | General Electric |
| Type of discrimination | Racial |
| Specific form of racial discrimination | Anti-Muslim |
| Ethnic majority in China | Han Chinese |
| Percentage of Han Chinese in China | Over 90% |
| Company that bought General Electric's appliance division | Qingdao Haier Co. |
| Year of the acquisition | 2016 |
| Amount of the acquisition | $5.4 billion |
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What You'll Learn
General Electric's sale of its appliance division to China's Haier Group
In 2016, General Electric (GE) sold its appliance division to China's Haier Group for $5.4 billion, with the price rising to $5.6 billion. This was China's largest acquisition of an overseas electronics business. The deal was approved by the boards of directors of both companies and was subject to customary closing conditions, including regulatory approvals.
The sale gave Haier ownership of a century-old business that manufactures refrigerators, freezers, washers, and dryers under brands such as Monogram, Café, Profile, and Artistry. GE Appliances was a major appliance manufacturer in the United States, with a 14% share of the US appliance market. The company also had a strong presence in the "value segment" of the market.
The acquisition was part of Haier's strategy to grow its presence in the United States and build its manufacturing capabilities. Zhang Ruimin, Chairman and CEO of Haier Group, stated that Haier and GE shared the same vision and values, including a focus on innovation and customer service. The deal also included a long-term strategic partnership between the two companies to explore cooperation in industrial internet, healthcare, and advanced manufacturing.
Following the acquisition, GE Appliances continued to operate as an independent subsidiary of Haier, with its headquarters remaining in Louisville, Kentucky. The company retained the right to use the GE brand name until 2056 and launched a new tagline, 'good things, for life', referencing its historical connection with General Electric. GE Appliances also expanded its product offerings and made significant investments in its US facilities, demonstrating its continued commitment to the business and its employees.
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The portrayal of racism in China as a Western phenomenon
Racism in China has been documented in numerous situations, with ethnic tensions leading to incidents such as the Xinjiang conflict, the persecution of Uyghurs and other ethnic minorities, and discrimination against Africans and Black people. While China is a largely homogeneous society, with over 90% of its population being Han Chinese, racism and ethnic tensions have been a part of its history.
Scholars have noted that the Chinese state's propaganda largely portrays racism as a Western phenomenon, contributing to a lack of acknowledgment of racism within Chinese society. This narrative of racism as a Western import has been challenged by historians and researchers, who argue that racism existed in pre-modern China and that contemporary China is not exempt from racial issues. The internalization of Western/white superiority, coupled with resistance to it, has become increasingly visible in China's rise. This ambivalence is reflected in diplomatic practices and popular discourses like the "supra-national treatment," which positions China as a rival to the West while dealing with its own inferiority complex.
The portrayal of racism as a Western phenomenon in China has been a contentious issue. While Chinese state sources deny or downplay the existence of racism in the country, incidents of racist occurrences continue to be reported. In 2023, a video shared by a Douyin account of the Ministry of Public Security featured actors in brownface singing an Indian song, sparking widespread criticism. This incident highlights the complexities of racism in China, where state narratives often contradict the lived experiences of racialized communities.
The Chinese Communist Party's (CCP) rhetoric about equality among China's 56 recognized ethnic groups has also been called into question. CCP General Secretary Xi Jinping's model of the "Chinese Dream" released in 2012 contradicted the party's message of equality, reflecting racial nationalist discourse. Additionally, the CCP's Patriotic Education Campaign has fueled anti-Japanese sentiment, with anti-Japanese demonstrations receiving tacit approval from Chinese authorities.
The portrayal of racism as a solely Western phenomenon in China ignores the country's history of ethnic tensions and the complexities of its societal dynamics. While Western influences have undoubtedly shaped some aspects of Chinese racial thinking, it is reductive to attribute all forms of racism in China solely to Western influence. Instead, it is crucial to recognize the unique historical, cultural, and societal factors that contribute to racial attitudes and incidents in China.
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China's negative media portrayal of Muslims
In 2016, General Electric sold its appliance division to Qingdao Haier, a Chinese company, for $5.6 billion. GE Appliances remains headquartered in Louisville, Kentucky, and operates as an independent unit with the right to use the GE brand name until 2056.
Regarding China's negative media portrayal of Muslims, a 2018 study found that Chinese news coverage of Muslims and Islam was generally negative, with non-Muslim Chinese holding negative views towards Islam and Muslims. Some Chinese Muslims have also reported discrimination and negative portrayals of themselves in the media. Observers have noted that negative stereotypes about Muslims have long existed in China, but a global rise in Islamophobia, the influence of fake news, and the actions of the Chinese government towards Muslim minorities have exacerbated the issue.
US-based researchers Rose Luqiu and Fan Yang argue that anti-Muslim sentiment in China has been spurred by news reports that often portray Muslims as prone to terrorism or as recipients of disproportionate government aid. Islamophobic content is widespread on Chinese social media, with negative comments and sentiments expressed following the 2019 Christchurch mosque shootings.
China's state media has been accused of contributing to Islamophobia by signalling out figures or groups as 'extremist', setting them apart from 'normal' Muslims who do not challenge the ruling Communist Party (CCP). However, some official media portrayals of Muslims stress their ethnic identity and belonging to the family of Chinese nationalities, portraying them as practicing their faith in a CCP-approved way and contributing to China's development and stability.
To address ethnic tensions and reduce prejudice, experts recommend encouraging increased meaningful intergroup contact, promoting positive media portrayals of ethnic minorities, and addressing socioeconomic inequalities in the long term.
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The impact of Western Islamophobia on Chinese sentiments
In recent years, Islamophobia has become an increasingly prominent issue in China, with rising anti-Muslim sentiments among the Han Chinese majority. This shift has been attributed to various factors, including historical conflicts between Han Chinese and Muslims, the global rise of Islamophobia, the influence of fake news, and the actions of the Chinese government towards Muslim minorities. While traditional media in China once approached Muslim issues with caution to foster positive relations with other countries, the emergence of the European refugee crisis and a series of terrorist attacks in 2015 sparked a surge in hostility towards Muslims and Islam.
Western Islamophobia, including the "War on Terror," has been identified by scholars and researchers as a significant contributor to the mainstreaming of anti-Muslim sentiments in China. The influence of Western Islamophobia is evident in the spread of negative stereotypes and the portrayal of Muslims as prone to terrorism or as recipients of disproportionate government aid. This has been amplified by Chinese news reports and social media platforms, with researchers analysing over 10,000 posts on Weibo in 2019, finding that anti-Muslim sentiment was prevalent. The spread of Islamophobia through online platforms has resulted in cyber harassment of Muslim users, particularly those from Hui and Uyghur communities, who have reported feeling misunderstood and facing challenges in expressing their faith due to Han-centric discourse and government censorship.
The Chinese government's policies and rhetoric have also played a role in shaping public sentiment. While the state initially recognised ten traditionally Muslim ethnic groups as part of its ethnicities, more recently, it has been accused of contributing to Islamophobia through its treatment of Muslim minorities. For example, Muslim prisoners in detention centres and internment camps have been subjected to practices such as being force-fed pork, and restrictions on Islamic education and religious practices have been imposed. The government has also been accused of preventing Chinese Muslims from performing Hajj and ""sinicizing" mosques, resulting in clashes with worshippers.
The rise of Han-centric nationalism, which posits that Han culture is the authentic characteristic of the Chinese nation, has further fuelled Islamophobia. This ideology, coupled with patriotic education campaigns, has created an ""us versus them" mentality, with non-Han groups, including Muslims, viewed as a potential threat to China's sphere of influence. Consequently, Islamophobic sentiments in contemporary China are intertwined with a sense of Han cultural superiority and a belief in the need to preserve Han dominance.
Overall, the impact of Western Islamophobia on Chinese sentiments is complex and multifaceted. While global trends have influenced the rise of Islamophobia in China, unique cultural, historical, and political factors shape the expression and manifestation of anti-Muslim sentiments within the country. As a result, Islamophobia in China is closely tied to ethnic tensions, government policies, and the spread of negative stereotypes through traditional and online media. Addressing the impact of Western Islamophobia in China requires a nuanced understanding of these interconnected factors and their specific cultural context.
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The existence of anti-Black discrimination in China
In 2016, China's Haier purchased GE's appliance business for $5.4 billion. Despite this, there is no evidence to suggest that General Electric faces discrimination in China. In fact, Chinese investment in the US economy is soaring, with several high-profile deals being made by Chinese companies in recent years.
However, when it comes to the existence of anti-Black discrimination in China, there is a different story to tell. While China has recently rallied behind Africa to protest against racism in the United States, there are reports of anti-Black discrimination in the country. For example, in April 2020, there was a wave of anti-Chinese rage on African social media in response to the poor treatment of Africans in Guangzhou, China. This incident highlights the complex nature of Chinese-Black race relations, which have been a subject of study by scholars such as Roberto Castillo.
Furthermore, there have been reports of discrimination against Black people in China, including instances of racial profiling and police brutality. In one notable case, a Black man was reportedly beaten and abused by Chinese police in 2016, sparking outrage and protests. This incident brought to light the broader issue of racial discrimination faced by African migrants and other people of African descent in China.
While the Chinese government has made efforts to address racial discrimination, including enacting anti-discrimination laws, the implementation and enforcement of these laws remain inconsistent. There have been reports of continued discrimination in various sectors, including education, employment, and housing. Additionally, the media and popular culture in China have been criticized for perpetuating negative stereotypes and portraying Black people in a derogatory manner.
Overall, while China has made some strides towards addressing anti-Black discrimination, there is still significant work to be done. It is crucial for the Chinese government to continue promoting cultural sensitivity, fostering diversity and inclusion, and enforcing anti-discrimination laws to create a more equitable society for all.
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Frequently asked questions
No, but it has faced scrutiny in the U.S. due to its sale of the GE Appliances division to the Chinese company Haier in 2016. The sale was for $5.4 billion, and Haier has the right to use the GE brand name until 2056.
General Electric is an American multinational conglomerate company dealing with a wide range of products, from aircraft engines to electrical distribution and software. The company was founded in 1892 and is headquartered in Boston, Massachusetts, U.S.
Yes, racist incidents have been reported in China, and they have become a contentious topic as Chinese state sources tend to deny or downplay their existence. Ethnic tensions have led to numerous conflicts, and the Chinese media's negative portrayal of Muslims and Islam has contributed to discrimination against these groups.
