Introduction: A brand is a unique design, sign, symbol, words, or a combination of these, employed in creating an image that identifies a product and differentiates it from its competitors. Over time, this image becomes associated with a level of credibility, quality, and satisfaction in the consumer’s mind . Thus brands help harried consumers in crowded and complex marketplace, by standing for certain benefits and value. Brands don’t do politics brands mostly do business.
Nation States:
Nation-states are political entities recognized as having sovereignty over a defined territory and population. They are key players on the international stage, engaging in diplomacy, trade, and often conflict with other nation-states. Each nation-state typically has its own government, laws, and cultural identity, which shape its interactions with the rest of the world. Nation States do politics and business all the time.
Aside the State other key actors include:
1. International Organizations: Entities like the United Nations (UN), World Bank, International Monetary Fund (IMF), and World Health Organization (WHO)
2. Non-Governmental Organizations (NGOs): NGOs, such as Amnesty International and Doctors Without Borders.
3. Multinational Corporations (MNCs): Large corporations like Apple, ExxonMobil, and Toyota
4. Supranational Organizations: Examples include the European Union (EU) and African Union (AU), which transcend traditional national boundaries and coordinate policies among member states in areas like trade, security, and human rights.
5. Transnational Criminal Organizations: Groups involved in illegal activities such as drug trafficking, human trafficking, and cybercrime operate across borders, posing challenges to national and international security.
6. Regional Powers: Countries like the United States, China, Russia, and India exert significant influence beyond their own borders due to their economic, military, and political power, often shaping regional dynamics and global affairs.
These actors interact and collaborate in various ways, contributing to the complex landscape of international relations. The State remains the dominant player and her action and inaction shapes International Relations and Business.
Global Security and the Autocratic behaviour of the State:
In recent years security agencies owned by the state have been known to hack phone lines of global leaders , political activists and any persons seen as threat and opponents of the state. However major state actors like the United States have now made it their business to go after brands that may be influenced by their state of origin in the way or manner they manage customers data and personal information.
Of immediate interest to this article is US – Huawei relations and US – Tik Tok Relations .
A few years ago the United States authorised the arrest of Meng Wanzhou, the Chief Financial Officer (CFO) of Huawei, in Canada due to allegations of violating U.S. sanctions against Iran. Meng was accused of committing fraud by misleading banks about Huawei’s business dealings in Iran, which could potentially expose them to sanctions violations. The U.S. Department of Justice requested her extradition to the United States to face charges related to bank and wire fraud.
Additionally, Meng’s arrest was part of a broader geopolitical context, as Huawei, one of the world’s largest telecommunications equipment manufacturers, has been at the center of U.S.-China tensions over national security concerns. The U.S. government has raised concerns about Huawei’s ties to the Chinese government and alleged involvement in espionage activities, accusing the company of posing a threat to national security. Meng’s arrest further escalated tensions between the U.S. and China, leading to diplomatic and economic repercussions between the two global players.
Ultimately, Meng’s arrest in Canada and the subsequent legal proceedings surrounding her extradition have become a focal point in the ongoing trade and technology disputes between the United States and China. Critics have drawn our attention to the fact that the US is not comfortable with Huawei leadership in the introduction of 5G Internet connection and the associated advantage it has given the Chinese multi national in the global telecommunication market.
While the Huawei matter is still simmering the US Congress recently passed legislation to limit the influence of Tik Tok in the United States.
The Tik Tok Matter:
It seems like the United States of America is still having a hang over from the 2016 allegations of elections manipulation that brought President Donald Trump to office. While the Americans are convinced the Russians were the culprits , the sentiment in Washington D.C is not to give the Chinese the opportunity to do an echo as the Russians did in 2016.
According to the No TikTok on Government Devices Act, the US government prohibits the use of TikTok on all federal government devices. Originally introduced as a stand-alone bill in 2020, it was signed into law as part of the Consolidated Appropriations Act, 2023 on December 29, 2022 by President Joe Biden who is ironically on Tik Tok.
In addition, the company and it’s app is also accused of the following:
Addictiveness. While TikTok’s addictiveness is a concern, it has a feature that tells users to leave the application after 60 minutes.
Misinformation. TikTok claims it does not allow misinformation as part of its community guidelines and actively works to remove it. It also does not accept political ads.
Children’s safety. There are many concerns over children abusing or misusing the application. However, TikTok has different UX for users under 13. For example, they cannot go viral and cannot use the private messaging feature.
Mental health. Content that promotes eating disorders, tobacco use or suicide is a concern. However, TikTok — like most social media companies — has a content moderation policy and aims to remove all violating content.
Selling data. Gathering and selling data that TikTok doesn’t need to make a profit is a concern. TikTok claims it does not sell data to data brokers.
Data security. Data leaks are a concern. Data leaks are a risk with any online service and common with social media. TikTok — and other social media platforms — use data access protocols to protect and organize data into categories of sensitivity.
Conclusions:
In the new world order major tech companies cannot only be American solely. Big tech giants , like Microsoft, Apple, Meta and X may face related backlash in their operational bases out of America. Critics says a tit for tat response would follow and this is not good for global business.
One wonders why the US a major proponent of free trade is not willing to tolerate other players in the global market.
One thing is certain the Asian tigers would distrupt global business once again and American sanctions would not deter them.
Finally, Is it premature to ask if we are about to witness the beginning of another era of American isolationism. Time would tell.
Michael Umogun fnimn | Director, Business Development. | The Insight Place Nigeria 08023117969