As a “winter sports enthusiast”, he is looking forward to the Olympic Games in Beijing, said the Chinese star pianist Lang Lang when he advertised the 131-year-old German insurance company in a hooded sweater printed with “Allianz 1890” in spring 2020.

Hendrik Ankenbrand

Business correspondent for China based in Shanghai.

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Henning Peitsmeier

Business correspondent in Munich.

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Johannes Pennekamp

Responsible editor for economic reporting, responsible for “Die Lounge”.

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Julia Löhr

Business correspondent in Berlin.

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Allianz is one of the top sponsors of the major event that will start in early February.

The Munich-based company is transferring an estimated 400 million euros to the International Olympic Committee (IOC) in order to be able to present their logo at four winter and summer games by 2028.

But the “Worldwide Olympic Partner”, as the Munich team has been able to call themselves since this year, does not want to be happy these days in view of the games, over which a dark cloud hovers due to allegations of human rights violations.

We hear from the group that there are now considerations to significantly reduce advertising activities around Beijing.

Allianz declined to make an official comment.

Eight year contract with IOC

Europe's largest insurance group signed an eight-year contract with the IOC in autumn 2018.

"Via the digital and social channels of the International Olympic Committee, we can address more people than ever before and offer them our expertise," said Allianz boss Oliver Bäte at the time.

Today he would be happy if, as an IOC sponsor, he addressed as few people as possible.

"To be visible now, of all times, makes little sense," said an Allianz manager of the FAZ

The alliance is the only German donor from the main sponsor group of the IOC, which includes such well-known corporations as Coca Cola, Dow Chemical, General Electric, Intel, Panasonic, Procter & Gamble, Visa and Toyota.

But now the alliance fears negative radiation effects because of the dubious reputation of the IOC.

It is doubtful that “the Olympic spirit unites mankind” in China, as Allianz advertising medium Lang Lang had hoped. In light of Hong Kong's submission, human rights violations in Xinjiang Province and the alleged arrest of tennis player Peng Shuai, the US has announced a diplomatic boycott of the Games. This was followed by Australia on Wednesday, then Great Britain and Canada on Thursday. In Germany, shortly before taking office as foreign minister, Annalena Baerbock threatened that the Games in China would have to be “looked at more closely” in view of the human rights violations.

A few weeks before it begins, the states and companies involved are heading for a conflict that could reverberate. The United States would pay "a price" for the boycott, the Beijing Foreign Ministry rages. Whether Australia sends government members to Beijing or not, is "anyway irrelevant". The Chinese embassy in Berlin reacted comparatively mildly to Baerbock's words, saying that “individual German politicians” should “vigorously respect China's core interests and main concerns”.

That was probably a pious wish.

In the German government parties, criticism of the Beijing games is growing louder.

Nicola Beer, the Deputy President of the European Parliament, does not want to pick out individual companies, but sees the entire economy as having an obligation.

Politicians, civil society and business must join forces in order to exert the necessary pressure on China, the FDP politician told the FAZ: "Companies also have to build up pressure.

Loss of sales threatens

The deputy leader of the Greens in the Bundestag, Agnieszka Brugger, calls for a diplomatic boycott. "In view of the human rights violations in China and the concrete allegations of Peng Shuai at the political level, it would be naive to travel to the Olympic Games and put on a good face for the bad game." And from their point of view, the companies also have a responsibility. "The sponsors of the games have to decide for themselves whether they want to make their good name and the corresponding money available against this background."

It is questionable that the alliance also sees it that way.

If she withdraws as a sponsor, she threatens to lose sales.

The Germans have just become the first foreign insurer to receive permission from the Chinese government to sell their life insurance policies in the huge market without a Chinese partner.

At the Olympic Games in Beijing, Allianz not only wants to offer a “Sports Camp”, but also “tailor-made insurance solutions and services”.

Fear of Beijing

In the event of an Olympic boycott by the federal government, there is fear in German industry that Beijing could punish German suppliers.

This can also happen unofficially.

It would be enough for China to cut off German automakers in the country from semiconductors, they say.

There is already said to be a dispute between Volkswagen and one of its state Chinese partners over the scarce chips.

In October, the sales of a VW joint venture fell by over 40 percent year-on-year - a disaster for the Wolfsburg-based company, who made two-thirds of their profits in China in good years.

The money will be used for the conversion to an electric car manufacturer.