The Impact of Nationalism of Consumers Loyalty: A Case Study of Multinational Retail Firms in China ()
1. Introduction
1.1. Research Background
U.S.-Chinese trade tensions have thrown a wrench into mutual ties between the world’s two largest economies ( Chen et al., 2020 ). Historically, the private sector in the United States has pushed for open commerce with China. Consequently, they became major winners in China’s opening market, but could suffer the most damage from the current conflict due to tariffs cutting into their earnings and conflicts disrupting their business ( Muhammad & Jones, 2021 ). As a result, prevailing models of trade politics presume that larger MNCs reap greater benefits from trade liberalization and are consequently more likely to make an effort to advocate for and encourage free trade.
In addition to local companies that obtain from China, foreign-based companies with operations in the United States may have a greater motivation to speak out against the tariffs ( Benguria et al., 2022 ). In fact, public comments submitted to the U.S. Trade Representative (USTR) concerning one of the initial three circumstances of Section 301 tariffs show that nearly 86% of something like the 4000 companies are opposed to tariff barriers, and 88% indicate that tariffs would disrupt their supply lines ( Benguria, 2019 ).
Commercial Chinese producers and advertising firms are the main players in forming the national character of China’s multinationals through advertising. These figures exist in China, changing as it prepares to enter the global marketplace ( Lang, 2022 ). As a result, Chinese producers and their companies use “foreignness” and “Chineseness” as marketing tools to contend with transnational rivals in China ( Dennis, 2020 ; Jiao et al., 2021 ). Foreign companies have started cashing in on Chinese patriotism, despite many Chinese manufacturers claiming to have the exclusive right to sell patriotism in China.
China is having trouble projecting, self-perceiving, and externally defining its character when it comes to multinationals. Advertisements in China are a collage and bricolage of cultural icons and elements ( Balabanis et al., 2019 ). Global capital and nation-states are essentially the same because capital dictates most national policies ( Tong & Hawley, 2009 ). Producers in China peddle patriotism to grow their country’s multinational business.
Transnationalism as a marketing strategy shows the concerns of China’s middle class about the effects of globalization. Additionally, it helps make the desire of many Chinese middle-class people to travel abroad a reality ( Yu et al., 2021 ). They want desperately to be part of the global community while secretly holding out for a firm footing in modern China. The paradoxes of globalization in China are also displayed in the country’s promotion of nationalism and transnationalism. Both nationalism and transnationalism are valid ways of understanding China in today’s global capitalist world. In contrast to the former, which takes China as a given and reaches out to Chinese around the globe, the latter is concerned with a universalist celebration of our shared humanity. Societies are pulled and pushed in different ways by globalization, with the process fostering both unity and diversity, collaboration and competition, and greatness and particularization ( Lin et al., 2021 ). Such opposing global factors find outlets in China’s transnational and nationalist movements.
1.2. Study Objective
The main purpose of this essay is to explore the effect of nationalist marketing on brand loyalty among Chinese consumers. This aim will be achieved through a case study analysis of a few multinational retail firms in China today. The research in this paper shows that economic nationalism has a negative impact on the operation of multinational retail enterprises in China. This paper analyzes the factors and ways of influence through case studies. On the one hand, it helps multinational companies to provide suggestions for better localization strategies in China, and on the other hand, it can provide a reference for Chinese corporations to go global.
2. Materials and Methods
2.1. Research Design
This study will be relied on a case study research approach to make conclusions on the research aim. An in-depth, multi-faceted comprehension of a complex problem in its actual context is what a case study is all about ( Siantz et al., 2017 ). It is a tried-and-true method of study with a long application history across many fields (especially the social sciences). Though the term “case study” is often used interchangeably, all definitions agree on thoroughly investigating an occurrence or situation within its own context ( Antony et al., 2016 ). As opposed to a “naturalistic” design, which means that the researcher actively tries to exert control over rather than alter the variable(s) of interest, this approach to research is sometimes referred to as an “experimental” design.
2.2. Study Approach
The study will qualitatively analyze the secondary data from different sources. Qualitative case studies are a type of research that permits in-depth examinations of phenomena in their natural settings through the use of various sources of information and a variety of theory viewpoints ( Di Mauro et al., 2018 ). Case studies examine phenomena in the here and now while considering environmental factors ( Bernstein et al., 2020 ).
One of the most popular approaches to qualitative research is the case study ( Antony et al., 2016 ). However, it still lacks a reasonable position as an empirical social science strategy due to the lack of well-structured and strictly determined protocols; as a result, novice researchers who feel compelled to use this method of analysis often become confused concerning what a case study is and the way it’s distinct from the other kinds of qualitative methods of study.
2.3. Study Material and Data Analysis
This study analyzed SEC documents, company registries, and company webpages to ascertain the percentage of Chinese workers at various companies, the number of Chinese affiliates, and the total amount of capital invested in China. All of the companies this study looked at included the ongoing trade dispute between the United States and China as a potential threat to their operations and bottom line in their yearly reports for 2021. According to these data collection requirements, we selected five multinational companies with relatively complete data and sufficient personnel and data in China as samples, respectively: Abbott Labs, Xinjiang Cotton (Sam’s Club), Deere & Company, the Sino, Twin City Fans, and Sorrento Pharmaceuticals are the companies that will serve as the focus of this case study.
3. Results
3.1. Introduction
This research selected companies from the initial dataset to guarantee a diverse group of both large and small businesses, including those new to and without previous experience with taxes. In selecting businesses, we considered factors like firm size and tax intensity. By adjusting these settings, policymakers can limit the impact of taxes and evaluate how firms respond without making selections based on the dependent variable. The cases center on the United States because that is where the businesses’ parent corporations are based.
3.2. Xinjiang Cotton and the Sino-US Trade War
As a result of Xinjiang cotton, the Sino-US trade war, and China’s nationalist messaging promoting the “four self-confidence”, Chinese customers returned membership cards to Sam’s Club which is high-end brand of Walmart ( Khalid, 2021 ).
In light of allegations of human rights abuses and forced labour in Xinjiang, the United States had previously banned cotton and cotton products. The prohibition started in June of this year, 2022 ( Ma et al., 2020 ). As a result of the prohibition, the cost of cotton and cotton fabric in China has dropped significantly. TexPro reports that in April, India imported 13,399 kilograms ($14,982) worth of cotton thread from China; in March, that number was 14,318 kilograms ($67,924); and in February of 2022, it was 36,307 kilograms ($221,872) ( Zhou & Cai, 2021 ). From China, India imported cotton thread totalling $414,868 kilograms ($2.348 million) in 2021, $577,172 kilograms ($2.515 million) in 2020, $806,298 kilograms ($3.732 million) in 2019, and $1,659,287 kilograms ($7.997 million) in 2018 ( Xu et al., 2021 ). In the first seven months of this year, shipments totalled 466,623 kilograms, or about $1.916 million ( Han et al., 2020 ).
According to industry sources, cotton fabric produced in China is reportedly 20% cheaper at landed cost than in the United States ( Wu, 2021 ). The base custom fee and other duties on cotton yarn add up to around 18%, but cotton yarn from China is still less expensive ( Li et al., 2020 ). Experts in the field say that Chinese cotton yarn, including that spun from Xinjiang cotton, can be used in local and non-US foreign markets. Weaving mills are receiving cotton thread from China, as has been reported by some sources. This means the item is not being sold but going straight to the manufacturing sector.
3.3. Deere & Company
The American company Deere & Company, commonly called “Deere”, is a Fortune 500 powerhouse known for its diverse product line, including everything from grass mowers to construction vehicles to forestry implements ( Trimble, 2008 ). The business engages in a variety of finance and associated services. In 2020, Deere had seven Chinese affiliates with a combined authorized capital of $420,519,906 and 2577 workers ( Eaton, 2021 ). Ningbo (100 percent owned), Jiamusi (100 percent owned), and Tianjin (100 percent owned) are the locations of these parent companies’ three manufacturing facilities (J.V.) ( Yunes et al., 2007 ).
In 1995, Deere made its first straight foray into the Chinese market, and in 1997, it formed its first joint venture there. Deere’s share of the market for low-horsepower tractors grew steadily over the next decade as the company expanded its network of joint ventures and gained greater access to the Chinese farm equipment market. Deere’s Chinese companies produce and sell farm equipment like tractors, combines, and motors in China and abroad. Deere has a foothold in China through its subsidiaries, employing 3.7% of its employees. Deere is involved in USCBC and AmCham China ( Li et al., 2020 ).
Deere’s import and export costs have likely increased as a result of the trade conflict between the United States and the People’s choices, the Chinese Republic, as agricultural machinery is a sector impacted heavily by duties placed by both sides. Single-axle tractors and tractor-mounted track-laying equipment are two examples of the types of products that may be subject to taxes under Section 301 ( Li et al., 2020 ). U.S. customs methodologies and punitive measures on China, along with additional restrictions affecting the exchange of goods and services involving China and Chinese parties, could have a detrimental effect on John Deere’s capacity to recover receivables, concentrate on selling components and accessories, endorse warranties, sell products, and furthermore affect Deere’s national reputation and business. In 2018, Deere’s yearly sales were $37.358B, up 25.62 percent from 2017 ( Li et al., 2020 ). The revenue increase was 5.09 percent in 2019 ($39.258B), but the start of tariffs and retaliatory tariffs reduced it to a 9.47 percent drop in 2020 ($35.54B) due to the COVID-19 pandemic ( Li et al., 2020 ).
3.4. Twin City Fan Company
Twin City Fan Company has been owned and operated by the same family since its founding in 1973 ( Crunchbase, 2022 ). The business claims to be the industry champion in the design and manufacture of commercial and industrial fans. Since its inception, Twin City has increased its production and support facilities in the Americas, Europe, Asia, and Oceania, including the United States, South America, and India. Twin City Fan Co. Ltd. was founded in 2006 as a production facility for Twin City Fan in Shanghai, China. G.M. and 3M were two of its first Chinese customers ( Crunchbase, 2022 ). In 2020, it will have 90 employees, or roughly 20% of its staff ( Crunchbase, 2022 ).
BMW, VW AG, and G.M.’s Chinese businesses are just a few of the many Twin City-China supplies to the Chinese car and petroleum industries. The city of Twin Cities buys and sells goods with China. It imports components from China to use in its US-made fans each year. They sent some high-end, custom-made fans to China. While the United States produces some high-end luxury fans for China, the vast majority of bespoke fans are made in China and sold to local Chinese and Western companies. Both Twin City-net China’s sales and net earnings have been on the rise from 2016 through 2019 ( Crunchbase, 2022 ).
The US-China Trade War impacted Twin City because it is a general equipment maker with ties to the Chinese and American markets. Fan A.C. motors and other fan components were among the six goods Twin City sought tariff exemption in 2019. The company acquired fan blades, hubs, shields, and A.C. motors from China for manufacturing. Twin City’s petitions to be excluded from List 3 tariffs were still unresolved as of 2020, so the company had to pay those tariffs beginning in September 2018 ( Crunchbase, 2022 ). Twin City is much more vulnerable to tariffs because more than half of its goods are imported from its single subsidiary in China, while Deere’s main trade partners are Germany and Japan. As might be expected, importgenius.com statistics show a sharp drop in Twin City exports from China to the United States after 2018.
3.5. Abbott Labs
Pharmaceutical and medical equipment manufacturer Abbott Labs (Abbott) is a Fortune 500 business. In 1995, Abbott began selling their products in China. Our data shows that by 2020, it had eleven companies in China employing 3,639 people and a listed capital of $286,861,413 ( Global Data, 2022 ). Medications, monitoring systems, cardiovascular and brainwave entrainment products, and food supplements like baby formula are just some of the many healthcare items that Chinese companies research, develop, produce, and market.
Abbott Labs Trading (Shanghai) Co., Ltd., one of the companies included in our survey, was founded in 2001 and is classified as a warehouse business. It dealt with distributing and stockpiling medical equipment, pharmaceuticals, dietary supplements, foods, and dairy products, such as powdered baby milk. Importing, exporting, and providing ancillary services are also permitted ( GlobalData, 2022 ). The tariff intensity metric is 0 because storage is not a trade-table business. Yet again, this results from the caution with which we assess the severity of tariffs.
However, while Abbot does purchase and sell goods from China, our hypothetical business only sells and stores Abbot’s products, so it is not directly affected by the Section 301 tariffs. The US-China trade war may impact the exports of companies specializing in making medicinal preparations, surgery, and medical instruments. Chinese duties have primarily targeted farming and transit goods but have also included some medical apparatus, which could indirectly affect the Shanghai branch ( GlobalData, 2022 ). It is difficult to estimate the full effect of tariffs without more information about Abbot’s Chinese subsidiaries’ activities and the origins and destinations of the goods imported and exported by each. However, in October 2020, Abbott was one of 3500 US businesses that sued the USTR in the International Trade Court over Section 301 duties. This move indicates that taxes caused serious damage.
3.6. Sorrento Therapeutics
Publicly listed biotech firm Sorrento Therapeutics (Sorrento) was established in 2009. In 2013, Sorrento began selling in China. In 2020, the company had five Chinese companies with a combined registered capital of $14,561,692 and 93 ( Murdock & Trieu, 2014 ). The Chinese operations of Sorrento are dedicated to R&D for biopharmaceuticals and not international trade. Zhejiang Zova Biotherapeutics, Inc., one of our representative subsidiaries, is a joint venture with Concortis Biosystem, which Sorrento purchased in 2013. Zhejiang Zova Biotherapeutics is a Chinese pharmaceutical company specializing in creating antibody-drug conjugates. They do this by utilizing cutting-edge technology licensed by Concordia.
Since Sorrento’s Chinese affiliates are primarily engaged in R&D for biopharmaceuticals, they were exempt from the duties imposed under Section 301. No 2018 information regarding shipments of this product from China to the USA could be located. The 37% of our sampled U.S. companies that were not negatively impacted by duties are represented by Sorrento ( Murdock & Trieu, 2014 ).
3.7. Nonreciprocal Trade Practices
China has been accused by Trump of engaging in exchange and correlation trade practices, in which it imposes higher tariffs on imports from the United States than on those coming from China. There is also a greater imbalance in favor of China in commerce with the US (Figure 1, Figure 2).
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Source: Author’s own plot.
Figure 1. Export and import of US with China.
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Source: Author’s own plot.
Figure 2. Trade balance of the US with China.
4. Discussion
We propose that the prolonged nature of the trade war can be traced back to two factors: the fact that Multinational Corporations (MNCs) vary in how deeply they are entrenched in China and that some MNCs have access to tariff mitigation methods others do not. To better inform the IPE community about international trade and investment politics, this paper dissects the complex role of American MNCs in the US-China Trade War ( Rao & Ko, 2021 ). Because the fixed costs of leaving China or losing a voice in the United States can be more than adapting to duties, U.S. multinational corporations typically respond to the trade war by staying put. While bigger companies (sometimes) lack the motivation to speak up, smaller ones often lack the means to do so ( Cui, 2019 ). Due to their higher market power and favoured access to various regulation gaps, we find that bigger, more established MNCs are impervious to taxes and political pressure to separate from China. However, there is no difference in the likelihood of departure or opinion among exporters and non-exporters. The fact that Multinational Corporations (MNCs) successfully advocated for trade openness in the past does not guarantee that they will successfully bring back tariffs in the trade war, as evidenced by these results.
Unlike previously accepted explanations for trade deregulation, EVL’s trade war interest group politics take a somewhat different tack. U.S. multinational corporations act in line with their economic interests, as measured by the extent to which they have invested in building relationships and have political clout in China ( Won-Moo et al., 2015 ). Therefore, it is not unexpected that MNCs’ responses to Section 301 duties vary depending on the age, size, and J.V. status of the parent company’s Chinese subsidiary ( Liu et al., 2020 ). While the large U.S. Multinational Corporations (MNCs) have more resources at their disposal and deeper foundations in China than the organizations pushing for trade reform, they are much less consistent in their support of protectionism.
Compared to TCF and Sorrento, Deere and Abbott joined and invested more heavily in the China market early. Three of the four case study businesses had a China-based company engaged in import-export. While TCF had the highest proportion of exports, Deere and Abbott were primarily “In China, For China”, catering to domestic demand. Instead of trading goods, Sorrento focused on innovation. As a natural response to the escalating trade conflict, TCF attempted to get tariffs removed from its products (without success) ( Lin et al., 2019 ). This study figured it would have made its opinion known through other methods if it had been able to do so. Abbott and Sorrento, on the other hand, pushed the USTR this year out of worry for their investors regarding the trade war, even though they were less directly affected by tariffs and did not apply for any exemptions. Executives at Deere and Abbott avoided taking a public position on the trade conflict, instead choosing to engage with organizations like the U.S. Chamber of Commerce. Only the TCF affiliate was fully owned, but the other three had joint ventures with Chinese companies and their manufacturing sites ( Lin et al., 2017 ). U.S. Multinational Corporations (MNCs) were aware of the trade war’s consequences and responded with various tactics to deal with them, as evidenced by the case studies. Especially when we disentangle the various speech patterns and consider China’s inability to retreat, we see that their actions had little effect on American politics.
The reasons are given here center on the exits of subsidiaries and the activities of their American parents. These similarities pave the way for vital follow-up studies in two main fields. One outstanding issue concerns how the company implements a “China plus one” business diversification plan ( Bae et al., 2019 ). A recent study by AmCham Shanghai found that one in eight Chinese companies is contemplating moving production elsewhere. Cost increases in China may hinder the success of Multinational Corporations (MNCs) seeking to expand into new markets outside China, so future studies should assess this possibility ( Lei & Chu, 2015 ). Second, firms differ in their local bargaining power, ability to advocate, and ability to avoid the costs of China’s trade conflict. How these international companies function in China amid the ongoing trade war is an important topic for future study.
The Emergence of a New Global Identity
Western and Eastern cultural icons are often juxtaposed in Chinese advertisements, with the message being that this is a celebration of humanity in its global form. Dreams of a better world and international recognition for the Chinese people are also promoted in Chinese ads. Chinese commercials promote ideals of global harmony and brotherhood. Ann advertisement for China Mobile, the country’s biggest cellular service provider, features kids of different races singing the “My Dream” refrain from Beethoven’s Ninth Symphony’s Chorale ( Chi, 2018 ). The commercial introduces its product with a young Chinese child singing in front of a crimson wall depicting a Chinese royal palace. He talks about his desire to travel the world and is accompanied by kids from around the globe. One of the toddlers in the commercial plays drums and another is shown ice dancing. Images of something like the Great Wall of China, the Eiffel Tower, high-rise urban buildings, and a blue ocean flash on the screen as kids from around the globe look up at the stars. A scene of children laughing and sprinting toward the Great Wall of China follows a picture of the Chinese Temple of Heaven in the commercial.
Both transnationalism and nationalism are present in this advertisement. On the one hand, it promotes the idea that kids worldwide want to meet and be friends and that these kids will eventually come together to build a peaceful society. In the Chinese paradigm of nationhood, the concept of unity is central. Its stated goals include presenting China as a stable nation capable of living in harmony with its neighbours and demonstrating an alternative social model capable of bridging gaps of language, culture, socioeconomic status, and ethnicity. By supporting the Chinese male singer, China is taking the lead in fostering international harmony and cooperation.
In the same way that the Pledge of Allegiance is significant to Americans, the red scarf worn by the singing boy is considerable to many Chinese because it symbolizes the youth and pride we are taught as children ( Godey et al., 2016 ). On the contrary, a peaceful universe can only be made when all children are seen sprinting along the Great Wall and up to the Temple of Heaven in unison as if they were all devout believers in Chinese tradition. All the kids at the Temple are Chinese, but they dress unusually, with the girls wearing berets and the boys wearing headscarves from the Middle East, so the picture gets hazy toward the end, and the camera is positioned in a certain way to conceal this fact. The ad is thus about how China builds up other cultures to show off its part in global peace ( Uncles et al., 2010 ). The commercial’s intended viewers are Chinese, but its message of peace and unity across the globe rings true regardless of origin. Connecting the world is a goal shared by people everywhere, and China Mobile is leading the charge to make that a reality through the power of Chinese culture. This advertisement echoes a common Chinese adage that “what is national is what is universal”, by making national values applicable to everyone. This proverb does more than suggest that nationalism occurs everywhere; it also lends credence to the idea that nationalism in China is justified as if the world’s future unity will be founded on Chinese values.
The Da Tongshu, written by the Qing dynasty’s eminent Confucian scholar Kang Youwei lays out a vision for a unified world and a perfect society where all people can get along. To him, ren (compassion, affection, or charity) was the most important quality needed to end the global conflict. When Chinese culture interacts with other cultures, universalist claims in Confucianism are often used to conceal the agreement ( Luo et al., 2020 ). It is fascinating to see how often the idea of the Grand Union is proposed in modern China. During Kang Youwei’s reign, China suffered several humiliating defeats at the hands of the West. As a result, many academics in China began to hold Chinese culture responsible for the country’s decline. Modern China is becoming increasingly integrated into the global capitalist system. Now that it has emerged as a global force, China is working to reclaim its cultural heritage and proper position worldwide. Making such broad promises in advertising is thus linked to China’s renewed faith. Instead of looking inward, Chinese businesses have started exploiting the global market. Not surprisingly, aspirational goals—including global exploration, international acclaim, career advancement, and the restoration of China’s status as the world’s foremost power—have become a staple of Chinese commercials. With its increased willingness to interact with the rest of the world, China has opened up its natural attractions to tourists.
5. Conclusion
Based on the research into modern Chinese advertising, this study contends that this industry actively promotes global and nationalist ideals to reach new Chinese customers. The promotion of both transnationalism and nationalism provides a glimpse into the complex and often contradictory views Chinese people have of their own country and the emerging global capitalism taking shape there. Only by analyzing advertisements developed by Chinese advertising firms will such insights become clear. Chinese advertising firms face fewer constraints than their Western counterparts when combining ancient and contemporary ideas or comparing China and the West. As a result, they have more leeway to adjust their services to the preferences of China’s growing middle class. There is less of a correlation between nationalism and consumerism, according to analyses of advertisements for international companies, and more of a propensity for hybridity and crossover, according to these same analyses ( Wang & Ynag, 2008 ). However, the data I gathered suggests that these three trends are occurring simultaneously for Chinese consumers: nationalism, transnationalism, and hybridity. This highlights the challenges academics face in their attempts to decipher Chinese culture. While China is longing for modernity, Chinese custom is still deeply ingrained and kept alive in daily practices, so it is not sufficient to look at only foreign ad campaigns in China as symbolic of the present government and the potential development of Chinese advertisements.
Multinational businesses and their advertising agencies are less likely to adopt this strategy than Chinese companies because they want to appeal to the broadest global audience. Foreign brands are rarely made to feel too “local” when MNCs integrate local aspects. Marketing campaigns for MNCs in China typically have one of two goals: to reinforce the companies’ established status as foreign powerhouses or strike a more nuanced balance. While multinational corporations may risk being seen as socioeconomic and cultural imperialists if they appropriate China’s anti-imperialism historical record and try to claim and essentialize their “Chineseness”, Chinese marketing departments are less likely to do so. This essay explains how Chinese nationalism is manufactured and marketed to the public. Speaking of the difficulty Chinese advertisers experience in global capitalism, their transnational advertising strategies frequently refer to the West as a type of transnational imagination. The underlying narratives of ads, whether they support nationalism, transnationalism, or some combination of the two, are still establishment and modernity-oriented. In the framework of China’s pursuit of modernity, internationalism and nationalism should be seen as inseparable, competing, and complementary processes of globalization. That contemporary communication technologies facilitate their maintenance as cultural constructions is undisputed. The advertisements offer concrete means of understanding what it means to be Chinese in today’s globalized society. This article extends Jian Wang’s research by providing evidence of pervasive advertising campaigns that fuse Chinese national identity with international socialist principles.
The advertisements from China represent the country’s competitiveness and tentativeness in the international economic realm, as well as its conflicted emotions about its legacy and the West. On the one hand, rapid economic development in China has emboldened nationalistic makers to promote Chinese culture and identity vis-à-vis the West. Marketers in China are actively creating and peddling a brand of “Chineseness” that begins on the peninsula and spreads to the Chinese diaspora. Chinese advertisers pick and choose from China’s anti-foreign history concerning the Western other and rearrange it to create a timeless narrative of national pride. Depending on the source, China is portrayed as either a strong leader or a caring father, a conqueror or a sufferer, a unique organism or a global unifier. “Chineseness” refers to China’s historical achievements and its potential future involvement in bridging international divides. Yet, the idea that Chinese tradition is hopelessly out of touch with the present persists. China is cast as the enemy, while the West represents progress and civilization. Using foreign models to promote Chinese goods conveys that China views Western approval of its contemporary progress as necessary. Chinese manufacturers seek out pictures of modernity by using European-style buildings and popular tourism destinations as symbols of affluence and good taste. Transnationalism in marketing reflects the aspiration of Chinese businesses and culture to be recognized and admired abroad. As a result, the Eurocentric paradigm of modernity gives Western businesses advantages that companies from other continents do not have in China. Unlike how they are depicted in the United States, European symbols in Chinese ads are typically associated with high culture and a sense of grandeur rather than the hedonistic, progressive, and fun values often associated with American icons.