China Hires Madison Avenue Ad Agency to Boost Global Image Amid Trade Tensions

Strategic Insights -

As China's manufacturing exports face increased scrutiny and trade barriers, the country is taking a unprecedented step to improve its global image. A 30-second television commercial, airing on CNN in the U.S., Asia and Europe, showcases satisfied consumers enjoying Chinese-made goods, highlighting the notion that China's manufacturing prowess benefits nations worldwide. The ad, funded by Chinese trade associations and the Ministry of Commerce, employs Western actors and a soft rock melody to portray a positive image of Chinese goods, with phrases like "Made in China, made with the world."

Key Takeaways:

  • China has hired a Madison Avenue ad agency, DDB, to help boost its global image amidst trade tensions.
  • The 30-second commercial targets audiences in the U.S., Asia, and Europe, highlighting the benefits of Chinese manufacturing for global consumers.
  • The ad features Western actors and products with labels that incorporate international manufacturing and design partnerships, such as "Made in China with American sports technology" and "Made in China with European styling."
  • Chinese officials have cited the campaign as an effort to promote Chinese goods "objectively" and diffuse trade tension with Western trading partners.
  • Experts have noted that the campaign is an attempt to move away from negative perceptions of Chinese goods following a series of product recalls and controversies.
  • The U.S. trade deficit with China was nearly $166 billion through the first nine months of 2009, leading to tariffs on Chinese-made tires and steel pipe.
  • China's Ministry of Commerce has been criticized for focusing on image improvement rather than addressing manufacturing practice issues in China.

Statistics:

  • China's trade deficit with the U.S. was nearly $166 billion through the first nine months of 2009.
  • The European Union has asked the World Trade Organization to investigate China's export restrictions on key raw materials.
  • Chinese-made tires and steel pipe valued at over $35 million were slapped with tariffs in the U.S.

Sources:

  • The New York Times, David Pierson, BEIJING -- "China Tries to Improve Its Image with TV Ads"
  • World Trade Organization (WTO)
  • Ministry of Commerce, People's Republic of China
  • DDB Worldwide Advertising Agency