ABSTRACT
The strategy that defines “cold politics, hot economics” at its heart is loyalty. Economic gravity in many ways dictates that loyalty should be the default strategy. China is a huge, and growing, economy with over a billion people that could be potential consumers. Loyalty takes many forms: Japanese dispatched in China actively minimize personal danger through coordination with local Chinese officials and Japanese business organizations. When anti-Japanese sentiment surges, a common response is to become quiet and as invisible as possible. Chinese security forces, local officials, business organizations, and Chinese business partners all play a role in maintaining the business relationship. Two consequences of these loyalty strategies are feelings of ostracism and depression amongst Japanese expatriates in China and that loyalty does not necessarily lead to solidarity. Long-term business associations between Japanese and Chinese do not necessarily lead to a shared understanding or common sense of business.
