Japanese‐brand auto sales in China under the shadow of oppositional sentiments

Abstract

AbstractThis study uses the interstate political conflict in 2010 to study the impacts of oppositional sentiment on product sales of Japanese‐brand automobiles in China. By using the nationwide automobile registration data in China, we conduct difference‐in‐differences analysis and find direct evidence on Chinese consumers’ boycott of Japanese‐brand autos. It is individual buyers rather than business or government entity buyers that boycotted Japanese cars significantly. War memory, nationalist education, and protests contributed to the intensity of boycott activities, and the boycott effect was long‐lasting. Older‐generation buyers boycotted Japanese cars more significantly, but younger‐generation buyers living in cities with historical war experience or patriotic education bases boycotted Japanese cars more actively than their counterparts in other cities.