Regardless of any negative associations, Nike nearly always sees rising profits, of which China is now a major source. Nike is one of the most well-recognized foreign brands in China. Over the seven months leading up to the Olympics, Nike will be releasing new products that cement the stature of the brand here. One of the first examples is the new Air Max 90 that celebrates Team China’s success in the 1984 Olympics in Los Angeles where it won 15 Gold medals. See the pics here.
Interestingly, even as Nike’s business improves in this market, much of its production is shifting out of China due to rising labor costs. The Chinese company that is one of Nike’s biggest suppliers, Yue Yuen Industrial, has shifted much of its production to Vietnam and Indonesia to cut costs. The new Chinese labor law, approved at the end of 2007, is expected to push even more producers out of the country.