Canadian Consumers Show Support For Chinese Brands
China and Canada are on the verge of an economic row following the arrest of Huawei chief financial officer Meng Wanzhou in a Canadian airport. The arrest was on the basis of an American warrant, a fact that has further divided the economic relations between China, Canada, and the United States.
Meng is still under house arrest at her extradition to the United States is still pending. She is set to face a number of charges including bank fraud. With this, Canada is stuck right in the middle of a trade war between two of the world's largest economies. Diplomatic tensions between China and Canada have also started to falter following the arrest.
While the Canadian government might be on the side of the United States in this fracas, the same cannot be said with Canadian consumers. In a survey published recently by the Canada China Business Council, it would appear that 53 percent of Canadian respondents have at some point modified their businesses dealings with China. Some said that the sudden shift of political landscape led them to make some changes. Moreover, almost one in five companies have said that they have investment, contracts, and deals that were delayed or canceled because of political tensions.
While political tensions are high, some Canadian brands are still making it big in China. One particular brand is Canada Goose, a company that sells winter clothing. The company opened its flagship store in the Chinese capital of Beijing in the same month as Meng's arrest. Despite calls for a ban, Chinese consumers lined up for days to buy Canada Goose's famous products.
Another western brand that made it big in its official debut in China is Tim Hortons. The coffee shop chain opened its first outlet in Shanghai in February. Just like calls for rejection from a number of protesters, Tim Hortons got a warm reception in China.
A number of Canadian companies were severely hurt when it comes to their business dealings with China following the arrest of the Huawei executive. Because of this, businesses and consumers alike have called for political change in order to win the Chinese market back.
China continues to stand as one of the world's largest consumer market. Western companies continue to flock to the market in hopes of making it big outside of their traditional markets. With more than a billion consumers, China is an attractive prospect for any company that is looking for a potential market for their products.