Hao Xiaoxi Hao Xiaoxi: China’s Domestic Market
A bullhorn wails from a market stall announcing a sale on plastic toys, “Hao xiaoxi, hao xiaoxi” (”Good news, good news”). The same cry can be heard in supermarkets and department stores and street markets, always followed by a list of the day’s bargains. And, Beijing would have the world believe, China’s growing domestic market is good news for the world. The country’s reputation as the world’s factory still rings true, but increasingly the consumer goods churned out by Shenzhen’s factories remain in China. International retailers, such as Wal-Mart, Auchan, and Yum! Brands, Inc. (owners of Kentucky Fried Chicken and other fast food companies), have been expanding in China for decades. The country’s enormous consumer class now draws the world’s attention as a potential saviour from the current economic turmoil. Now Mercedes-Benz, Louis Vitton, UniQlo, and other international storefronts have become a fixture of China’s numerous growing urban centers throughout the country. The domestic market here is the largest in the world, and the potential for expansion into China has become a major priority for many international companies.
Politicians in Beijing have been downplaying the severity of China’s share of the global economic crisis. Outlooks remain optimistic and, thanks in part to half-trillion-dollar stimulus plans, the country’s economic growth has not declined as rapidly as some had predicted. Through tax incentives, government-provided shopping vouchers, a lowering Consumer Price Index, and a nationwide “Buy China” movement, consumer spending in China has remained strong throughout recent months and is expected to grow in the near future. While many doubt that the country’s domestic market will bring swift respite to the world’s economies, evidence suggests it has done much to soften the blow to China’s bottom line.