Coke Undeterred in China

Coca-Cola (KO) isn't backing down in China despite the intrusive, protectionist government's recent decision to bar the company's takeover of the country's largest juice maker, Huiyuan.

Agence France-Presse reports that Coke has launched a major marketing campaign this week aimed at boosting the profile of its Minute Maid brand. This comes a week after the China Daily reported that Coke was planning to drop its bid for Huiyuan in the wake of the government's antitrust ruling.

AFP also cites this startling figure: Coke has budgeted $2 billion for marketing in China over the next three years. That's about $400 million more spending in China than the company shelled out from 1979 to the present. It had been planning to spend $2.4 billion on Huiyuan.

That would have greatly strengthened Huiyuan, which has struggled recently, and hence would have strengthened the national economy. But the Chinese government figures it this way: What good is saving jobs when it means taking on the national shame of Huiyuan being owned by foreigners?

Now, of course, that shame may come from foreigners simply beating the stuffing out of Chinese companies in the marketplace.