2018 World Cup: China is not on the field but stays in the picture

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Europe

By CGTN’s The Point

“It’s not really just a game on the field. It’s also a competition for business,” said John Gong, a professor of economics at the University of International Business & Economics in Beijing.

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The 2018 World Cup kicked off on Thursday in Russia. This year, the tournament stretches across 11 cities in the country, with the final match to be held in Moscow on July 15.

Although no Chinese team will be playing this year, at the opening ceremony in Moscow’s Luzhniki Stadium, spectators watched six Chinese teenagers waving FIFA flags and leading players onto the field. That’s because Chinese brands will account for over a third of the tournament’s estimated 2.4 billion US dollars in additional advertising spending worldwide.

“In China, people are rich enough, people’s lives are well off enough to afford watching this game, to bid for this top sport in the sponsorship game. Look at countries like Brazil and Argentina. Their enthusiasm for soccer is way more than here in China, but companies in Brazil and Argentina can’t afford competing with companies in China,” Gong explained.

By comparison, about six months ago, only a third of the 32 sponsorship slots were filled — a far cry from previous years when spots were mostly booked up almost two years in advance. Also, high-profile names like Castrol, Continental, and Johnson & Johnson pulled out of the controversy-filled event.

“These American companies pulled out of the sponsorship reportedly because of the scandal at FIFA. I doubt it very much. I think overall the sponsoring of these games has become more and more expensive. Whether soccer has such a big audience in the US is probably in question, given the very high price to pay. I think it’s really economics driving this.”

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This year, some of China’s biggest brands, including Wanda Group, Hisense, Vivo, Yadea, and China Mengniu Dairy signed on as sponsors and advertisers. China's largest commercial property company, Wanda Group, is one of FIFA’s seven official partners.

Chinese President Xi Jinping previously stated that he wants his country's team to win the World Cup one day. He also said that he'd like China to host the tournament and intends to bid for the 2030 event.

As Gong pointed out, even though China’s soccer team has been “miserable” for the last several decades, soccer is still a big thing for China, not to mention the world economy.

The Point with Liu Xin is a 30-minute current affairs program on CGTN. It airs weekdays at 9:30 p.m. BJT (1330GMT), with rebroadcasts at 5:30 a.m. (2130GMT) and 10:30 a.m. (0230GMT).