1 00:00:00,170 --> 00:00:02,260 - What do Instagram, Lady Gaga, 2 00:00:02,260 --> 00:00:04,480 and the letter N have in common? 3 00:00:04,480 --> 00:00:07,530 They've all been banned in China for political reasons. 4 00:00:07,530 --> 00:00:10,240 Maybe even this video will be banned in China. 5 00:00:10,240 --> 00:00:13,810 With an estimated GDP of $14 trillion, 6 00:00:13,810 --> 00:00:16,510 China has the power to allure American companies 7 00:00:16,510 --> 00:00:19,150 which want in on the sizeable market. 8 00:00:19,150 --> 00:00:21,300 And, if they want a slice of the pie, 9 00:00:21,300 --> 00:00:23,050 they have to play nice. 10 00:00:23,050 --> 00:00:25,530 That means placating China politically 11 00:00:25,530 --> 00:00:29,010 so they don't end up in censored oblivion with the rest. 12 00:00:29,010 --> 00:00:30,970 So time and time again 13 00:00:30,970 --> 00:00:33,393 American companies have folded to China. 14 00:00:34,580 --> 00:00:36,810 This time, Chinese and American ideals 15 00:00:36,810 --> 00:00:39,510 are at loggerheads over basketball. 16 00:00:39,510 --> 00:00:42,810 The geopolitical firestorm was sparked from a single tweet 17 00:00:42,810 --> 00:00:44,930 from the manager of the Houston Rockets, 18 00:00:44,930 --> 00:00:47,680 who voiced support of the Hong Kong protests. 19 00:00:47,680 --> 00:00:50,480 It's ballooned into a battle of ideologies, 20 00:00:50,480 --> 00:00:53,780 of territorial nationalism versus freedom of speech. 21 00:00:53,780 --> 00:00:55,460 But China has the upper hand. 22 00:00:55,460 --> 00:00:56,760 It's pulled NBA games 23 00:00:56,760 --> 00:00:59,810 from the state-controlled broadcaster CCTV 24 00:00:59,810 --> 00:01:02,010 and from the streaming service Tencent, 25 00:01:02,010 --> 00:01:03,760 and it's promised to punish the NBA 26 00:01:03,760 --> 00:01:07,310 for slighting its values, threatening retribution. 27 00:01:07,310 --> 00:01:09,600 - What this speaks to is the fragility 28 00:01:09,600 --> 00:01:11,320 of the Chinese government. 29 00:01:11,320 --> 00:01:15,880 It really does reveal a deep-seated lack of confidence 30 00:01:15,880 --> 00:01:19,400 within the Chinese leadership about their own legitimacy. 31 00:01:19,400 --> 00:01:23,060 - The reality is the overblown reflex is nothing new. 32 00:01:23,060 --> 00:01:25,490 Experts used to talk about the 3 Ts: 33 00:01:25,490 --> 00:01:29,750 Tibet, Taiwan, and Tiananmen, the touchy territorial taboos. 34 00:01:29,750 --> 00:01:31,950 When foreign companies imply that these regions 35 00:01:31,950 --> 00:01:35,910 are their own autonomous states, China is quick to punish. 36 00:01:35,910 --> 00:01:37,300 Take airlines. 37 00:01:37,300 --> 00:01:39,700 All the major U.S. carriers have gotten flack 38 00:01:39,700 --> 00:01:42,020 for listing Taiwan as a separate country 39 00:01:42,020 --> 00:01:43,570 on their dropdown menus, 40 00:01:43,570 --> 00:01:46,990 so did Marriott Hotels, for listing Taiwan and Tibet. 41 00:01:46,990 --> 00:01:49,810 Mercedes-Benz was disciplined for quoting the Dalai Lama 42 00:01:49,810 --> 00:01:51,400 on an Instagram post. 43 00:01:51,400 --> 00:01:54,290 - Oh oh oh, yeah, no no, we don't wanna go there. 44 00:01:54,290 --> 00:01:56,710 Talking about the Dalai Lama doesn't go over well 45 00:01:56,710 --> 00:01:57,913 with the Chinese. 46 00:01:59,020 --> 00:02:00,320 - The what? 47 00:02:00,320 --> 00:02:01,890 - In the entertainment world, 48 00:02:01,890 --> 00:02:04,330 China often gets to shape Hollywood content 49 00:02:04,330 --> 00:02:06,780 and retaliates if it doesn't get its way. 50 00:02:06,780 --> 00:02:09,540 For a long time, Brad Pitt was banned from China 51 00:02:09,540 --> 00:02:11,860 for starring in "Seven Years in Tibet." 52 00:02:11,860 --> 00:02:15,952 Oh, and so was Winnie the Pooh, for other reasons. 53 00:02:15,952 --> 00:02:18,320 - No, no, no, no, that's definitely off limits. 54 00:02:18,320 --> 00:02:19,760 Winnie the Pooh is illegal in China 55 00:02:19,760 --> 00:02:21,050 because some Chinese students said 56 00:02:21,050 --> 00:02:23,040 he looked like the Chinese president. 57 00:02:23,040 --> 00:02:24,860 - Oh, come on, that's ridiculous. 58 00:02:24,860 --> 00:02:25,720 - What's more astounding 59 00:02:25,720 --> 00:02:28,500 than the dramatic reactions and the sanctions 60 00:02:28,500 --> 00:02:30,340 is how quickly and cooperatively 61 00:02:30,340 --> 00:02:32,590 Western companies cave to China. 62 00:02:32,590 --> 00:02:35,150 Now, the semi-autonomous region of Hong Kong 63 00:02:35,150 --> 00:02:38,210 has become another sensitive geopolitical subject 64 00:02:38,210 --> 00:02:41,840 after months of protest about a proposed extradition bill. 65 00:02:41,840 --> 00:02:44,160 Cue: more yielding to China. 66 00:02:44,160 --> 00:02:47,230 Luxury fashion brands have issued these fawning apologies 67 00:02:47,230 --> 00:02:49,720 after designing T-shirts listing Hong Kong 68 00:02:49,720 --> 00:02:51,230 as a separate nation. 69 00:02:51,230 --> 00:02:54,630 And e-sports company Blizzard Entertainment banned a player 70 00:02:54,630 --> 00:02:57,400 who called for the liberation of Hong Kong. 71 00:02:57,400 --> 00:02:59,860 The fear of alienation from the Chinese market 72 00:02:59,860 --> 00:03:01,070 is remarkable. 73 00:03:01,070 --> 00:03:02,900 With so much revenue at stake, 74 00:03:02,900 --> 00:03:06,130 it's simply bad business to put principles first. 75 00:03:06,130 --> 00:03:09,540 Take the NBA, which is incredibly popular in China. 76 00:03:09,540 --> 00:03:12,420 The streaming partnership between the NBA and Tencent 77 00:03:12,420 --> 00:03:15,684 is reportedly worth $1.3 billion. 78 00:03:15,684 --> 00:03:20,430 Tencent's NBA audience was more than 490 million in 2018. 79 00:03:20,430 --> 00:03:22,210 And, as a whole, it's estimated 80 00:03:22,210 --> 00:03:24,780 that the NBA makes $4 billion a year 81 00:03:24,780 --> 00:03:27,040 from this Chinese partnership. 82 00:03:27,040 --> 00:03:29,660 That's not to mention lucrative sponsorship deals 83 00:03:29,660 --> 00:03:32,523 that keep NBA stars submissive to China. 84 00:03:33,390 --> 00:03:34,223 - When you're misinformed 85 00:03:34,223 --> 00:03:36,850 or you're not educated about something, 86 00:03:36,850 --> 00:03:40,050 and I'm just talking about the tweet itself, 87 00:03:40,050 --> 00:03:42,240 you never know the ramifications that can happen. 88 00:03:42,240 --> 00:03:43,460 - But other players 89 00:03:43,460 --> 00:03:45,870 and politicians on both sides of the aisle 90 00:03:45,870 --> 00:03:48,653 have spoken out against kowtowing to China. 91 00:03:49,800 --> 00:03:52,580 - And some of the NBA's biggest players and owners 92 00:03:52,580 --> 00:03:54,480 who routinely exercise their freedom 93 00:03:54,480 --> 00:03:55,790 to criticize this country 94 00:03:57,290 --> 00:04:01,900 lose their voices when it comes to the freedom and rights 95 00:04:02,858 --> 00:04:04,008 of the people of China. 96 00:04:05,400 --> 00:04:08,080 In siding with the Chinese Communist Party 97 00:04:08,080 --> 00:04:10,290 and silencing free speech, 98 00:04:10,290 --> 00:04:12,910 the NBA is acting like a whole-owned subsidiary 99 00:04:12,910 --> 00:04:16,100 of that authoritarian regime. 100 00:04:16,100 --> 00:04:18,350 - The Vice President is also taking a shot 101 00:04:18,350 --> 00:04:21,010 at athletes and coaches who've used their platform 102 00:04:21,010 --> 00:04:24,170 to speak out on civil rights and gun violence in America. 103 00:04:24,170 --> 00:04:27,530 Still, human rights abuses are flagrant in China. 104 00:04:27,530 --> 00:04:29,860 A million Uygur Muslims are reportedly 105 00:04:29,860 --> 00:04:33,090 in concentration camps in Xinjiang province, 106 00:04:33,090 --> 00:04:36,200 where the NBA set up a training academy. 107 00:04:36,200 --> 00:04:37,890 Is it time for American companies 108 00:04:37,890 --> 00:04:40,290 to take ethical stances on free speech? 109 00:04:40,290 --> 00:04:42,120 They may no longer have a choice. 110 00:04:42,120 --> 00:04:46,010 - Companies are gonna have to be aware that this NBA issue 111 00:04:46,010 --> 00:04:50,060 has elevated the issue of Chinese economic coercion 112 00:04:50,060 --> 00:04:51,530 into the popular consciousness 113 00:04:51,530 --> 00:04:53,390 in a way that it never has been before. 114 00:04:53,390 --> 00:04:55,560 - One solution is for multinational companies 115 00:04:55,560 --> 00:04:57,210 to form coalitions. 116 00:04:57,210 --> 00:05:01,060 - What they fail to recognize is that if they were to unite, 117 00:05:01,060 --> 00:05:03,600 they would have significant leverage over China. 118 00:05:03,600 --> 00:05:06,977 If the airline industry had united and said, 119 00:05:06,977 --> 00:05:09,277 "We are going to recognize Taiwan 120 00:05:09,277 --> 00:05:11,340 "in any way that we see fit," 121 00:05:11,340 --> 00:05:12,940 what is Beijing going to say? 122 00:05:12,940 --> 00:05:15,070 They're gonna tell all international airlines 123 00:05:15,070 --> 00:05:17,770 that you cannot have access to China? 124 00:05:17,770 --> 00:05:19,890 We're going to cancel all of your routes? 125 00:05:19,890 --> 00:05:22,170 - But, naturally, companies are going to compete 126 00:05:22,170 --> 00:05:25,450 with each other to strike that lucrative deal with China. 127 00:05:25,450 --> 00:05:27,820 So, China knows it can get away with it. 128 00:05:27,820 --> 00:05:30,500 Ultimately, it's hit a nerve for the Chinese 129 00:05:30,500 --> 00:05:33,030 and exposed some home truths for the U.S. 130 00:05:33,030 --> 00:05:34,680 China's response to Pence? 131 00:05:34,680 --> 00:05:37,287 Americans need to "look themselves in the mirror 132 00:05:37,287 --> 00:05:39,070 "and get their house in order" 133 00:05:39,070 --> 00:05:41,180 before pointing the finger at China. 134 00:05:41,180 --> 00:05:43,320 This is a deeply nuanced issue, 135 00:05:43,320 --> 00:05:45,290 rooted in centuries of history, 136 00:05:45,290 --> 00:05:46,980 without a clear-cut answer. 137 00:05:46,980 --> 00:05:48,680 - Well, you know what they say. 138 00:05:48,680 --> 00:05:51,000 You gotta lower your ideals of freedom 139 00:05:51,000 --> 00:05:53,850 if you wanna suck on the warm teat of China. 140 00:05:53,850 --> 00:05:55,557 - And, if it wasn't clear, 141 00:05:55,557 --> 00:05:57,953 "South Park" is definitely banned in China.