# Companies in China distance themselves from Taiwan amid Pelosi backlash
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-08
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: China Companies Distance Themselves from Taiwan Tensions
Meta Description: Discover how Chinese companies are responding to geopolitical tensions over Taiwan after Nancy Pelosi's visit, facing criticism and backlash.
URL: https://financedigest.com/companies-in-china-distance-themselves-from-taiwan-amid-pelosi-backlashhtml

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By Eduardo Baptista

BEIJING (Reuters) – From a Chinese soy sauce maker to an Asia-focused asset manager, companies in China are rushing to distance themselves from geopolitical tensions over Taiwan following last week’s visit to the island by a high-profile U.S. official.

[China claims self-ruled Taiwan](https://www.financedigest.com/taiwan-reports-chinas-largest-incursion-yet-to-air-defence-zone.html "Taiwan reports China’s largest incursion yet to air defence zone") as its territory, and the visit by U.S. House of Representatives Speaker Nancy Pelosi to Taipei last week – in defiance of Beijing’s [warnings – has sparked a wave of Chinese](https://www.financedigest.com/chinese-fret-over-elderly-as-who-warns-of-holiday-covid-surge.html "Chinese fret over elderly as WHO warns of holiday COVID surge") nationalism and huge military drills.

Chinese social media users have [targeted companies](https://www.financedigest.com/britain-toughens-up-diversity-targets-for-uk-companies.html "Britain toughens up diversity targets for UK companies") and celebrities they see as unpatriotic or supportive of Taiwan’s independence with strong criticism – such as candy brand Snickers, whose owner apologised last week for a product launch that was seen as suggesting Taiwan is a country.

On Saturday, Foshan Haitian Flavoring and Food Co Ltd, [China’s largest soy sauce maker](https://www.financedigest.com/lighting-maker-signify-cuts-2022-outlook-again-on-china-business-lighting.html "Lighting maker Signify cuts 2022 outlook again on China, business lighting") by sales, issued a lengthy apology, saying it had fired an unidentified employee who attracted social media attention with a private post that celebrated Pelosi’s visit.

The inappropriate content published seriously goes against Haitian’s culture, does not match with Haitian’s values, and has hurt the feelings of the Chinese people, producing a negative societal influence,” the company said on its Weibo account, promising it would [manage its employees](https://www.financedigest.com/how-to-manage-burnout-and-how-leaders-should-support-employee-wellbeing-tom-keya.html "How to manage burnout and how leaders should support employee wellbeing | Tom Keya") better.

Another business, Asia-focused asset manager Matthews International Capital Management, issued a clarification on Monday after it was described by Beijing-backed [Hong Kong](https://www.financedigest.com/citadel-accelerates-hiring-push-in-hong-kong-and-london.html "Citadel accelerates hiring push in Hong Kong and London") newspaper Ta Kung Pao as being founded by Pelosi’s husband, saying such allegations were “factually incorrect.

It said on its website that it was founded by Paul Matthews, not Paul Pelosi, and also did not have any current ownership or business ties with William Hambrecht, who is a friend and political supporter of Pelosi, contrary to [media reports](https://www.financedigest.com/credit-agricole-is-weighing-foray-into-german-car-sharing-media-report.html "Credit Agricole is weighing foray into German car-sharing: media report").

We take the recent misreporting and false statements about our firm very seriously and are working with media outlets to take prompt corrective action,” Matthews, whose main owners include Paul Matthews, Mark Headley, Mizuho [Financial Group](https://www.financedigest.com/mazars-to-acquire-financial-modelling-consultancy-and-training-provider-corality-financial-group.html "Mazars to acquire financial modelling consultancy and training provider, Corality Financial Group") Inc and Royal Bank of Canada, said on Monday.

In a separate case, Taiwanese chip maker United Microelectronics Corp (UMC), distanced itself from its founder Robert Tsao, who last week pledged to donate NT$3 billion (US$100 million) to help Taiwan bolster its defences, after his comments were pilloried by Chinese [social media](https://www.financedigest.com/saudi-snitching-app-turns-citizens-into-social-media-police.html "Saudi snitching app turns citizens into social media police") users.

In a statement, UMC said: “Mr Tsao retired from UMC more than 10 years ago. He has nothing to do with UMC.”

Chinese state media have issued warnings, [saying that companies should consider](https://www.financedigest.com/sega-sammy-says-it-is-considering-buying-angry-birds-maker-rovio.html "Sega Sammy says it is considering buying Angry Birds maker Rovio") their access to the world’s second largest economy with respect to the Taiwan situation and Pelosi, who has, along with her immediate family, been sanctioned by China after her visit.

It can be expected that if any ties of interest with [China can be found in the business](https://www.financedigest.com/credit-agricole-launches-china-ma-and-investment-banking-business.html "Credit Agricole launches China M&A and investment banking business") activities of Pelosi and her immediate family members, they will definitely be cut off,” state-backed Global Times newspaper said in an editorial over the weekend.

China’s military announced fresh military drills on [Monday in the seas and airspace around Taiwan – a day after the scheduled end](https://www.financedigest.com/amazon-to-lay-off-staff-in-u-s-canada-and-costa-rica-by-end-of-day.html "Amazon to lay off staff in U.S., Canada and Costa Rica by end of day") of its largest ever exercises, confirming the fears of some security analysts and diplomats that Beijing would continue to maintain pressure on Taiwan’s defences.

(Reporting by Eduardo Baptista, Samuel Shen, Sarah Wu; Editing by Brenda Goh and Mark Potter)


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