The Intelligence from The Economist Fight or flight: Cathay Pacific
Aug 23, 2019
Stephanie Studer, the China business correspondent for The Economist, discusses Cathay Pacific's struggles amid rising political pressures from China and the implications for international businesses. Tom Gardner, an Economist correspondent in Ethiopia, explores the explosive growth of Pentecostalism and its political impact, providing personal stories that illustrate its appeal. The podcast also touches on the environmental plight of puffins in the Faroe Islands, highlighting the cultural and ecological challenges they face.
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Cathay Pacific's Dilemma
- Cathay Pacific, caught between mainland China and its Hong Kong staff, faced pressure due to employee protests.
- China banned protesting cabin crew from mainland flights, leading to firings and the CEO's resignation.
Coordinated Pressure on Cathay
- Beyond direct actions, a coordinated attack from Chinese government entities and state-owned enterprises amplified the pressure on Cathay Pacific.
- This included media criticism, stock downgrades, boycotts, and alleged employee surveillance.
A New Level of Intrusion
- Multinationals in Hong Kong are used to some level of interference from mainland China, but the pressure on Cathay Pacific set a new precedent.
- This incident has led to a climate of fear and self-censorship, with companies avoiding discussions of the protests.