By Panos Mourdoukoutas
McDonald’s has no claims in the South China Sea.
It hasn’t taken any sides in the dispute between China and its neighbors either.
Still, the South China Sea disputes may have had something to do with the company’s decision to sell its businesses in mainland China and Hong Kong for $2.08 billion to Citic, a state-owned conglomerate, and Carlyle Group, a private equity firm.
How so?
Still, the South China Sea disputes may have had something to do with the company’s decision to sell its businesses in mainland China and Hong Kong for $2.08 billion to Citic, a state-owned conglomerate, and Carlyle Group, a private equity firm.
How so?
South China Sea disputes have ignited Chinese nationalism against every country that disputes China’s quest to control the region.
And America is on the top of the list, as are companies that are American business icons -- like McDonald’s, Apple and others.
Last July, Apple’s stores in China attracted the angry protests of nationalists trying to boycott Apple products.
And America is on the top of the list, as are companies that are American business icons -- like McDonald’s, Apple and others.
Last July, Apple’s stores in China attracted the angry protests of nationalists trying to boycott Apple products.
Why?
Because America has had been on the Philippines side on the South China Sea dispute.
That’s something Beijing and the nationalists who carried its message to the streets couldn’t accept or comprehend.
One week earlier, an international arbitration court found that China has no historic title over the waters of the South China Sea -- a ruling which served to contain China's ambition to control trade and resources in the region.
Still, the ruling was a big victory for the Philippines, which filed the case back in 2013 under Annex VII of the United Nations Convention on the Law of the Sea (UNCLOS), the primary treaty governing international maritime law.
The ruling, which was also a victory for America, Philippines’ close ally, means that South China Sea doesn’t belong to China.
One week earlier, an international arbitration court found that China has no historic title over the waters of the South China Sea -- a ruling which served to contain China's ambition to control trade and resources in the region.
Still, the ruling was a big victory for the Philippines, which filed the case back in 2013 under Annex VII of the United Nations Convention on the Law of the Sea (UNCLOS), the primary treaty governing international maritime law.
The ruling, which was also a victory for America, Philippines’ close ally, means that South China Sea doesn’t belong to China.
And Beijing cannot legally write its own navigation rules in South China Sea or control trade in one of the world’s busiest waterways.
The problem is that China has been defiant of the arbitration ruling.
The problem is that China has been defiant of the arbitration ruling.
Beijing continues to use harsh language, asserting its sovereignty over the South China Sea and adjacent areas, declaring that it is ready to defend its sovereignty over the waters militarily.
That has sparked protests against popular American companies like Apple— and things have turned worse in recent weeks following Philippine’s President Rodrigo Duterte flip flops.
To be fair, McDonald’s had all kinds of problems in China that must have contributed to the company’s decision to cede control to a local entity.
That has sparked protests against popular American companies like Apple— and things have turned worse in recent weeks following Philippine’s President Rodrigo Duterte flip flops.
To be fair, McDonald’s had all kinds of problems in China that must have contributed to the company’s decision to cede control to a local entity.
But it might very well be the South China Sea disputes that brought the company to the tipping point.
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