Interesting Facts of the Day About China
1. China will become the second largest consumer market in the world by 2015, behind only the U.S.
2. Wal-Mart is opening one store per week in China.
3. KFC is opening one store per day in China.
4. IKEA has stopped advertising in China because its stores have become so crowded it's facing "crowd control" problems.
~James McGregor, author of the book "One Billion Customers: Lessons from the Front Lines of Doing Business in China," from his interview today on NPR.
8 Comments:
An Ikea sofa that costs $1,250 in China costs $750 in California. Think of the business companies will have in China once the currency goes to where it should be.
I wonder if these companies are opening up 'ghost franchises' in these ghost cities?
"I wonder if these companies are opening up 'ghost franchises' in these ghost cities?"
Perhaps "opening up" isn't exactly the right phrase, But it's good to be prepared. You know what they say: "If you build it, they will come." :-)
James McGregor also said: "They (the Chinese) like luxury goods more than anybody I've ever seen."
I wonder who he's talking about?
The billion plus dirt poor peasants, factory workers, etc. (who shop at Wu-Mart, because Wal-Mart is too expensive) or the communist elite?
Another interesting fact about China:
Report: Chinese officials stole $120 billion
June 17, 2011
Thousands of corrupt Chinese officials have stolen more than $120 billion and fled overseas since the mid-1990s -- and the U.S. was a top destination, according to a report released by the country's central bank.
The report, released this week by the People's Bank of China, says between 16,000 to 18,000 government officials and executives at state-owned enterprises smuggled about 800 billion yuan ($123 billion) out of China between the mid-'90s and 2008.
"Thousands of corrupt Chinese officials have stolen more than $120 billion and fled overseas since the mid-1990s -- and the U.S. was a top destination, according to a report released by the country's central bank."
So the trade deficit isn't as bad as some believe?
One other fact to consider is if China were to allow the RMB/US$ to reflect it's true valuation of about half, China's GDP as measured in dollars would be double what is being reported.
"One other fact to consider is if China were to allow the RMB/US$ to reflect it's true valuation of about half, China's GDP as measured in dollars would be double what is being reported."
No. If the exchange rate RMB/USD changed, the new rate would be used to calculate China's GDP, and it would be the same amount it is now, expressed in dollars. The value of the RMB would change, not the value of the USD. Otherwise, one would have to believe that China suddenly started producing twice as much in goods and services.
Post a Comment
<< Home