This chapter adopts a practical approach, focusing on the effective management of risks in the “new era” for businesses operating in China. The ever-evolving larger environment has led to a significant transformation in the nature of risks faced by companies in China over the past decade. Unfortunately, many foreign companies are not adequately prepared to address these emerging risks, which puts them at risk of encountering unforeseen challenges. Since China's declaration of entering a new era in 2017, char-acterized by consumption-led growth, innovation, territorial integrity, and a proactive role in addressing global challenges, the ramifications of this shift have had an impact on foreign companies operating in the country. Among the various risks that have emerged, three particularly challenging ones are heightened national pride, economic nationalism, and sporadic antiforeign sentiments. As China experiences a surge in national pride and a growing sense of economic nationalism, foreign companies must navigate a more complex and sensitive operating environment. The rise of consumer nationalism, triggered by patriotic sentiments and a desire to support domestic businesses and products, has created unique challenges for foreign brands. Moreover, occasional antiforeign sentiments arising from territorial disputes, historical tensions, or controversies can further complicate the business landscape.

This chapter provides a comprehensive risk management discussion while placing specific emphasis on examining significant instances of consumer nationalism in China over the past five years. It aims to offer practical strategies that could have been implemented by companies to effectively manage such risks. To assess companies’ resilience levels, a scale is proposed based on Shimp and Sharma's Consumer Ethnocentrism Tendencies Scale (CETSCALE) and the Consumer Ethnocentrism Extended Scale (CEESCALE). By analyzing major consumer nationalist actions in China, this chapter sheds light on the specific challenges that foreign companies have faced in this evolving landscape. It explores instances where consumer ethnocentrism has influenced consumer behavior and preferences, leading to shifts in brand perception and consumption patterns. Understanding the underlying factors that contribute to consumer nationalism is crucial in formulating effective risk management strategies. Drawing on the insights provided by Shimp and Sharma's CETSCALE and CEESCALE, this chapter proposes a resilience assessment scale. This scale aims to measure companies’ ability to navigate and withstand the challenges posed by consumer nationalism.

This chapter aims to provide readers with a comprehensive historical context surrounding the phenomenon of Chinese consumers’ nationalism, shedding light on the distinct characteristics exhibited by each wave throughout time. By delving into pivotal moments, such as the renowned narrative of “The Shop of the Lin Family,” which vividly portrays the eruption of nationalistic consumer boycotts in China back in 1932, to the more recent events like the fervent public backlash against South Korea and its impact on Lotte Mart in Beijing's Wangjing district in 2017, this chapter offers a captivating journey through the evolution of consumer nationalism in the country.

Within the pages of this chapter, readers will find answers to pressing questions regarding the transformations witnessed in Chinese consumer nationalism in recent years. By examining the changing dynamics, it seeks to unravel the multifaceted nature of this phenomenon and explore the various factors that have contributed to its evolution. Specifically, the chapter endeavors to shed light on the role played by the government and state media in each wave, deciphering their influence and exploring their motivations. This chapter also contemplates the ramifications that may arise from the emergence of a new wave of consumer nationalism. By drawing upon historical insights and analyzing current trends, it endeavors to provide a forward-looking perspective on the potential consequences of this evolving phenomenon. As society navigates through this new wave, it becomes increasingly crucial to understand the implications it may have on various aspects, including politics, economics, and social cohesion.

Ultimately, this chapter serves as an invaluable resource for readers seeking to grasp the intricate tapestry of Chinese consumers’ nationalism through-out history. By examining each wave's characteristics, unraveling the role of government and state media, and anticipating the potential outcomes of a burgeoning new wave, it invites readers to engage critically with this complex and ever-evolving aspect of Chinese society.

History of Chinese Consumers’ Nationalism

Consumer nationalism emerged as a recurring theme in the dynamic relationship between China and the Western world, gaining notable prominence during the late nineteenth century and reaching its zenith between the 1900s and the 1940s. Throughout this period, several pivotal instances of consumer nationalist movements unfolded, leaving a lasting impact on Sino-Western relations.

This chapter delves into a crucial aspect of the existing research on nationalism in China, highlighting a notable issue that has emerged. The prevailing approach has tended to examine Chinese nationalistic sentiments as a unified whole, neglecting the inherent complexity and diversity within this phenomenon. Taking such a holistic perspective is overly simplistic and fails to account for the multifaceted nature of Chinese nationalists’ motivations and actions.

To rectify this oversight, it is imperative to categorize the various manifestations of consumer nationalism in China based on a range of indices. By doing so, we can gain a more nuanced understanding of this complex phenomenon. Therefore, this chapter aims to explore the distinct types of consumer nationalistic actions observed in China and elucidate the varying consequences associated with each type. In order to substantiate this argument, the chapter will present several illustrative cases.

The central contention put forth in this chapter is that contemporary consumer nationalism in China can be effectively classified into three distinct types, each engendering a different level of consequences. By differentiating these types, we can discern the specific motivations, behaviors, and outcomes associated with each category. This nuanced approach not only enriches our comprehension of consumer nationalism in China but also contributes to a more comprehensive analysis of nationalism studies in general.

Mapping the Field

Nationalism, as a widely acknowledged sentiment shaping both public and private spheres, has been prevalent since the late eighteenth century. Its influence on global politics can be understood through the concept of identifying the state or nation with its people. However, to grasp the concept of “consumer nationalism,” it is essential to differentiate it from related terms such as economic nationalism, commercial nationalism, consumer ethnocentrism, political consumerism, and consumer nationalism.

Economic nationalism

The term “economic nationalism” has a historical origin that can be traced back to the early twentieth century. It gained recognition through the works of notable economists and scholars who examined the concept in depth. One of the earliest instances of using this term can be attributed to American economist Alvin Johnson in 1917, who is renowned as one of the cofounders of the New School for Social Research.