China Expat




A Very Public Consumer Protest

There is a very public consumer rights fight taking place on the streets of Beijing. If you have been in the city over the last six weeks you may have noticed lines of black and white SUVs lining the roads near the Silk Market, Ya-Show, and Worker’s Stadium Road North (工体北路). Painted on them are slogans in Chinese advocating the rights of "消费者"(consumers) and complaining about car manufacturer Chevrolet. The story is an odd one that involves the still developing policies regarding automobiles here, mysterious censorship by ‘leaders’ at Chinese internet portal giant Sohu, and an increasingly assertive role of local consumers.

My first thought when I saw they spray painted cars was that either the government, or a local car maker trying to push out foreign competitors, might be behind the demonstration. However the truth is something quite different. Instead, it is a dispute between 57 consumers who purchased Chevy SUVs and both the local dealership and Chevrolet China.

After investing tens of thousands of RMB for the SUVs, an amount one protester described as “我血汗钱” (my blood, sweat, and money), the buyers were informed that they could not get license plates. In effect this meant that driving them carried the risk of police confiscation. Normally in China the dealership is responsible for securing the plates, but the company in Beijing, Tongyong (通用) argued that the manufacturer in Shanghai should be held accountable in this case.

Mr. Cheng, one of the men who has become somewhat of a spokesman for the group, contacted the automakers’ headquarters in Shanghai, which informed them that it was the responsibility of the local dealership. Furthermore they claimed at the time of purchase, March 1, 2007, Chevrolet had already discontinued any association with the Tongyong dealership. In April several of men went down to Shanghai in an attempt to embarrass the car maker at an auto show [pictured on left. Image from this site], an unusually aggressive measure in China where corporations tend to wield significant power and public protests are discouraged. Their efforts paid off in the form of a meeting with several representatives of Chevrolet. During the discussion the company told them that something would be worked out with the dealership or factory itself within a few weeks. However by June it was clear that nothing would happen.

Mr. Cheng managed to get a sit down with the owners of the dealership in Beijing on June 7th. After a contentious meeting that lasted several hours, the group decided to air their grievances on Sohu.com, a giant of the Chinese internet, and the 22nd most popular website in the world just after Ebay. Yet only four hours after they posted their protest, it was mysteriously removed. When a Chinese newspaper reporter contacted the company to ask for an explanation they were told the company’s ‘leaders’ had decided it was not “appropriate” content.

The group of 57 consumers was beginning to run out of options. They wanted one of the two companies to provide them with plates making their cars legal, or a refund of their money. Afraid that the cars would get confiscated if they drove without proper documentation they decided to park them in at least three strategic locations around the city (apparently they will not get towed even if they do not have license plates). Once permanently parked on the side of the service lane, they spray painted their grievances on the sides of the vehicles for all to see.

So since the second to last week in June the SUVs have sat on the street drawing curious stares and more than their fair share dirt. In several of the windows the owners have posted a local newspaper article about the struggle. Passers by frequently crouch over to read the piece and try to make sense of the peculiar sight. Given that the dealership would be giving up about one million US dollars if they chose to give out refunds, it is highly unlikely that this will be resolved any time soon.

It is difficult to know if this is an isolated incident or part of a broader trend of Chinese willing to push back at perceived injustices. While the fight is unusually public, it is directed at two privately owned businesses, one of which is American. Perhaps that is the reason why the protests have been allowed to continue for so long in such clear sight. There have been no accusations hurled at any government agencies, and only one Chinese merchant of dubious reputation is affected. Yet, as evidenced by the removal of the Sohu posting, it is clear that someone with power, possibly Chevrolet, possibly someone else, wants the dispute to go away. And yet the SUVs remain on the streets, going on nearly two months.

For now it will have to remain a mystery. Is this a solitary act of protest, or an indication of more assertive Chinese consumers?

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Legal action

What kind of legal action can they take against the dealership? Is the Chinese system sophisticated enough to effectively deal with the problem formally?



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