The emergence of China as an economic superpower

The trade imbalance between U.S. and China drew many peoples’ attentions. Lately, a friend of mine visited China. He took a close look around China’s retail market, and told me that the urban Chinese middle class does consume a lot, but:

1. They buy the luxury goods from Western European Manufactures.

2. They buy high-tech electronics largely from Japan and Korea.

3. They like the products made by Nokia and Volkswagen respectively.

4. They buy American-made Pringle Potato chips, Heinz Steak sauce, Ragu tomato sauce, and Hershey’s Chocolate.

5. They don’t buy a lot of U.S. products because of the concern for quality.

“That may partially explain the trade gap between the two nations,” said my friend.

True, partially.