Archive for ‘Affluence’

11/03/2012

* A tale of two (Chinese) regions

China Daily: “China’s economic development over the last 30 years has been “a tale of two regions” — prosperous coastal areas where GDP matches some developed countries and inland areas that have lagged behind. …

In 2011, China laid out a 10-year development plan for the middle and western areas of the country, demarcating 14 impoverished regions and creating development plans for each region. Three of the 14 regions are in southwest China’s Guizhou province, which has a total of 65 counties listed as impoverished.

“When these areas develop, it will help to effectively close the gap with the eastern part of the country,” said Li Zhanshu, secretary of the Guizhou provincial committee of the Communist Party of China and a deputy to the National People’s Congress (NPC), which is meeting now in Beijing.

The gap between the coast and many other parts of China is indeed large. From 1978 to 2011 per capita GDP in coastal Zhejiang province has risen on average 11.6 percent per year to $9,000 in 2011, far above the national average. This figure is about three times the amount for Tibet and Gansu province, in China’s west.

Closing this gap has been a major topic of the current annual NPC session and the concurrent meeting of the Chinese People’s Political Consultative Conference, China’s leading political advisory body.”

via A tale of two regions|Economy|chinadaily.com.cn.

Given China’s success at creating a major ‘municipality’ of Chongqing in 1997 to act as a magnet in the centre of China, we shouldn’t be surprised if in 15 years these impoverished regions start to become more like the coastal regions of China.

Related page: https://chindia-alert.org/prognosis/chinese-challenges/

01/02/2012

* China re-emphasizes agriculture

With growing affluence and changing tastes, several staples like soya, rich and pork that used to be exported are now imported. China focused on manufacturing and infrastructure for two decades. It is now re-emphasizing agriculture: in terms of investment in technology and research, in terms of exhorting local authorities to pay heed to it and to irrigation projects.

http://news.xinhuanet.com/english/china/2012-02/01/c_131386786.htm

23/01/2012

* Chinese luxury goods brand you’ve never heard of

Chow Tai Fook is a Hong Kong based jeweller with revenues 50% higher than Tiffany’s. It has 1,500 outlets in China, mainly in second tier and third tier cities. It IPOed 10% of its shares 6 weeks ago which puts the value of the company at around $20bn.

With Chinese New Year here (Year of the Dragon), jewellery purchases are expected to be high and Chow Tai Fook hopes to gain some of that.

http://blogs.wsj.com/scene/2012/01/03/getting-to-know-chow-tai-fook/

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