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Conspicuous consumption in China

Many economic prognosticators believe Chinese consumption growth is key to a global economic recovery.  The US consumer, who had been the buyer of first and last resort during the bubble years, is tapped out and indebted.  The new engine of global growth must come from elsewhere.

On Friday, BBC Radio 4 released a broadcast called “Selling Cheese to the Chinese” recounting how Europeans and North Americans are aggressively hawking their culinary wares to the burgeoning Chinese middle class. For young twenty-somethings who have lost an appreciation for their own culinary history due to its suppression during Mao’s Cultural Revolution, western products have a certain appeal.

For those seeking status, there are even French wine and cheese parties designed to ‘educate’ about European culinary delights.  Some can even spend a month’s salary drinking single-malt Scotch in bars.  Welcome to the wonderful world of conspicuous consumption in China.  Is this the new source of global growth?  Western companies and entrepreneurs sure hope so because they are falling all over themselves trying to break into the Chinese market.  Personally, I am sceptical. This report tells the tale.

Have a listen below.

Source

Documentaries Podcasts – BBC World News

About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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• Conspicuous Consumption 17 May 2008
• Why the personal consumption data is important to the stock market 2 Jun 2009
• Perpetuating excess consumption 6 Aug 2009
• A brief primer on Xinjiang, China and riots there 9 Jul 2009