Disputes over some islands in the Pacific between Japan and China have affected sales of Japanese automobiles in China. Rioting, anger, and violence toward the Japanese has prompted some Chinese to react hostilely toward Japanese cars and their owners, in some cases, leaving the owners severely injured. Anti-Japanese sentiment coupled with fear of violence and… Continue reading Effect of Anti-Japanese Sentiment on Inland Buyers
The growth in Chinese demand for luxury goods is a testament to the strides China has made developmentally over the past few decades. Now containing the most millionaires in the world, the purchasing power of the Chinese Consumer will continue to be a driving economic force. Highlighted in August’s luxury, German car data, it is… Continue reading Chinese Consumer Drives Demand for Luxury Autos
There is some concern that China is in a credit bubble. Since the financial crisis, debt owed by Chinese individuals, corporations and governments has increased dramatically. Earlier this year, Fitch downgraded ratings of China’s sovereign debt. China’s debt-to-GDP ratio of almost 200% is now higher than the 176% figure Japan reached in 1990 before the country’s… Continue reading Impending Credit Bubble?
Apple unveiled two new iPhone’s today in Cupertino, CA. The iPhone 5s is the successor to the popular iPhone line, however in a unprecedented move, Apple also released another phone, the 5C. The iPhone 5C is the new $100-$200 (16-32GB) option which Apple is using to target the lower income smartphone consumers. Many analysts and… Continue reading Apple’s Iphone 5C and China
China’s recent economic slump may be nearing its end. This past August, China’s industrial output, manufacturing, and exports all exceeded their expected growth. After suffering two disappointing quarters, this is good news for the Chinese economy. Shipments of exports rose 7.2% in August, though it was only predicted to rise 5.5%. This news came just… Continue reading China’s export growth exceeds August expectations
Although Ikea has provided a home furnishing and bedding market in China for fifteen years, the home superstore just recently developed a greater understanding of the Chinese marketplace. While Ikea is a Swedish/Dutch based company, the store is widely known all over the world for their reasonably priced home goods. Especially considering China’s obsession with… Continue reading Ikea Learns Chinese Consumer Customs
A recent article in the Wall Street Journal compares the current state of credit in China to that of the United States in 2007. This is an especially poignant comparison as we begin the semester and try to distinguish what characterizes the Chinese economy as unique. According to George Magnus at UBS, similarities between the… Continue reading Meltdown Similarities: China and the U.S.
Under the new President Xi Jinping; a wave of reform against corruption within China’s government has occurred. Jiang Jiemin, the minister of state-owned enterprises was charged with “serious violations of discipline” or corruption. Mr. Jiang along with several officials in the state-run oil industry have been charged as well.
How do we compare standards of living? We’ll discuss PPP measures and other formal means. We would like however to be comfortable that the results of our formal measures “make sense.” …47% pre-diabetic reflects prosperity, not poverty and not aging… As we’ll see, older Chinese remember hunger; younger Chinese may well know of aunts and… Continue reading Comparing standards of living