Greater China: Nike faces China ire over 'Fear' ad

The sports brand had originally defended the campaign, saying it had been inspired by Hong Kong's kung-fu films from the 1970s. It said it had hoped the campaign would help Asians face their fear of basketball.

However, industry observers said they were surprised by the Government's reaction to the campaign."It didn't cause outrage. When you talk to local consumers, everyone understands Nike and Toyota have very little in common," said an agency head.

Late last year, Toyota caused an outrage when its ad for its new Land Cruiser showed stone lions - revered as symbols of authority - bowing to the vehicle.

"The Government sees itself as a guardian of people's dignity and, every so often, it picks a victim to attack in the interests of nationalism," the agency chief added.

Kenny Jiang, client services director at Shanghai-based Groove Street, said he anticipated limited negative impact on the brand despite the Government's reaction. "Being Chinese, I did feel a little bit uncomfortable when I first saw the banned ad," Jiang said. "But will it affect my next choice of Nike products ... I'm sure I will care more about price, design and features."

An outdoor execution of the same campaign caused a stir in Singapore when it was flyposted on poster sites last month. Members of the public complained that the ads were despoiling the cityscape.