The NBA and other American businesses cannot give into censorship demands from the Chinese government, says Carson Block of Muddy Waters Research.
The compromise of having to form a joint venture to do business in China isn't inherently bad, Block said.
"But the compromises that they must not make are the compromises that extend beyond the territorial borders of the [People's Republic of China]," Block said.illustrates the consequences of doing so, Block said, contending that it's led to some moviemakers being hesitant to portray the country in "anything but the most positive light possible."
"To me, that's a real problem," he said. "When we're getting extraterritorial application of Chinese censorship, that is where companies must draw the line. If that means you don't take the investment in your film production company from China, then don't take that investment. That's principled."
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