Traveling abroad has become a common trend for Chinese younger generation and the impact of their purchasing power to visiting countries is immense. It is understandable that people would prefer to purchase goods in specific countries wherein they were invented or pioneered. However, Chinese tourists gobble up everyday items and even Chinese-manufactured goods. This phenomenon reflects Chinese consumers’ strong disbelief in domestic goods and retailers. Although increasing Chinese consumers who can afford the best demand better quality goods, the majority of Chinese manufacturers still focus more on producing less costly goods with inferior quality. One of the most famous example of this manufacturing system is milk powder production. Due to its notoriously poisonous ingredients including industrial chemical, China’s milk powder has been drastically decreased since 2008. Consequently, Chinese parents prefer to pay extra money and effort on purchasing foreign milk powder.
This phenomenon signifies that Chinese manufacturing has yet to advance as far and quickly as it should. Moreover, the problem does not remain in domestic scale but it also creates “parallel traders” which can hamper other countries’ market flow.