Page 17 - IAV Digital Magazine #407

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In U.S.-China Game of Chicken Over South China Sea, KFC Feels The Heat
By Julie Makinen Does diving into a buck- et of Kentucky Fried Chicken make you a Chinese traitor?
That’s the in-your-face message some KFC customers in China received over the week- end in wake of a ruling by an international tribu- nal in the Netherlands in a case that pitted the Philippines against China.
Colonel Sanders was no party to the arbitration, in which Manila (backed by Washington) prevailed in a dispute over maritime rights in the South China Sea.
But globalization means the chicken restaurant of your enemy’s friend can also become your enemy. China, which found the ruling to be anything but Finger Lickin’ Good, called the Philippines’ case a “trap” and said the proceed- ings had been “hyped and manipulated by the U.S.”
And now KFC is paying the price.
At an outlet of the restaurant chain in the city of Tangshan, scores of protesters carrying Chinese flags unfurled a
red banner outside one of the fast-food out- lets. “Boycott the U.S., Japan, South Korea and the Philippines; love our Chinese nation,” it declared. “What you eat is American KFC; what is lost is the face of our ancestors.”
A video that circulated on Chinese social media sites captured a protest- er outside the restaurant trying to persuade three young men not to go in. “If there is a war, every bomb the U.S. uses on us will have some share of your money,” he chides. “If you stop now, you are still Chinese. If you enter, when the U.S. and the Philippines start the war, you will all be trai- tors." The prospective customers then appear to walk away.
Other videos online showed boycott advo-
cates harassing patrons inside other KFC restau- rants.
KFC is not the only for- eign brand that has been targeted with boycott calls since the ruling — some self-declared patri- ots have called on their fellow Chinese to stop buying Nike shoes and iPhones (even though they’re assembled in China) and refrain from eating McDonald’s ham- burgers and dried man- goes grown in the Philippines.
One mango vendor on the EBay-like website Taobao posted a mes- sage to his own online store proclaiming: “I love China. Ban sales of Philippine dry mangoes. Everyone is responsible for the fate of the nation. Let Filipinos starve to death.”
It was unclear how many
KFC outlets had been targeted for boycotts; the company opened its first Chinese branch in 1987 and has more than 5,000 stores in China. Reached by phone,
a spokeswoman for Yum Brands, the parent com- pany of KFC, said the company had “done nothing wrong” and was a “victim.”
“The people who are doing this don’t under- stand what being patriot- ic really is,” said the spokeswoman, who refused to give her name. She said the company had gone to great lengths to “local- ize” its operations in China.
Any sustained boycott of KFC restaurants could be a major blow to the Kentucky-based Yum, which also owns the Pizza Hut and Taco Bell brands.
Powered mostly by sales at KFC, China has become the largest source of revenue for the company, responsi- ble for about $1.6 billion of its $3 billion in rev- enue in the second quar- ter, the company report- ed last week. Yum plans to spin off its China operations into a sepa- rate entity this fall.
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