Sinophobia as Corporate Tactic and the Response of Host Communities

China's State Council has charged that in 2009 BHP Billiton inflamed Australians' fear of “Chinese colour” in order to undermine Chinalco's (Aluminium Corporation of China) effort to increase its share of the Rio Tinto company. Though unproven, this is a serious charge and the more so because it suggests there is a risk that in the future firms challenged by Chinese competitors may emulate the alleged practice. Given this possibility, anti-racists require a sophisticated understanding of how firms might incorporate Sinophobia into their business strategies and how Chinese foreign direct investment is viewed by national and local communities. To further this response, we review the literature on the use of racism as a corporate tactic, discuss the Chinalco-BHP struggle, and provide a study of how one community reacted when offered the chance to host a large Chinese investment.